[SMM coal and coke daily briefing] 20250610

[SMM Daily Briefing on Coking Coal and Coke Market]

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.

On the raw material fundamentals side, some coal mines have halted or reduced production. Overall supply remains stable for now. The third round of price cuts for coke has been implemented. The purchasing pace of downstream terminals has slowed down, and the market is cautious about purchases. It has become more difficult for coal mines to sell their products. Even after the price reduction of spot coking coal, sales remain sluggish. The center of transaction prices in online auctions continues to move downward. The downward trend in the market has not yet ended. This week, coking coal prices may continue to be 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, after the third round of price cuts for coke, some coking enterprises have experienced minor production cuts due to losses. However, most coking enterprises have maintained normal production. In terms of inventory, coking enterprises are facing difficulties in selling their products, leading to a continuous accumulation of inventory. On the demand side, steel mills' coke inventories are at a reasonable level. They generally adopt a strategy of controlling purchase volumes and restocking mainly based on demand. In summary, the supply of coke is relatively loose, and there is still an expectation of weakening cost support. The market sentiment is bearish. This week, the coke market will be in the doldrums, and there will be a fourth round of price cuts in the future. [SMM Steel]