[SMM Daily Briefing on Coke & Coal] 20250609

[SMM Daily Briefing on Coking Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,190 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,280 yuan/mt.

In terms of raw material fundamentals, coal mine production in some regions has slightly decreased, but market confidence has not been restored. Despite continuous price reductions by coal mines, transactions remain poor, and coal mine shipments are sluggish. Coking coal inventory continues to accumulate. Online auctions are mainly characterized by failed bids and transactions at lower prices. This week, coking coal prices are expected to remain in the doldrums.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,495 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,355 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,170 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,080 yuan/mt.

In terms of supply, coal mines continue to offer price concessions, enabling coking enterprises to reverse losses into small profits. Overall production remains stable, but some coking enterprises facing inventory buildup pressure have implemented production cuts, leading to a slight tightening of coke supply. On the demand side, the recent downturn in the finished steel market has led to an increase in blast furnace shutdowns and maintenance at some steel mills, resulting in a decline in pig iron production. Steel mills have low purchase willingness and are controlling arrivals. In summary, cost support has weakened, supply remains relatively loose, and market sentiment still leans towards price declines. This week, the coke market is expected to remain in the doldrums, with expectations for a fourth round of price reductions. [SMM Steel]