[SMM Daily Coke & Coal Brief Review] 20250612

[SMM Daily Briefing on Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,180 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,230 yuan/mt.

In terms of raw material fundamentals, some coal mines have halted production, leading to a tightening in coking coal supply. However, the market remains in a downward cycle, with downstream buyers exercising caution in their purchases. Online auction transactions are still not satisfactory, with transaction prices mainly declining. In the short term, the prices of some coal types will continue to face downward pressure.

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, the national environmental protection inspection teams have been stationed in many northern provinces. Additionally, some coking enterprises are experiencing losses and accumulating inventory, leading to slight production cuts and a tightening in coke supply. In terms of demand, the finished steel market has entered the off-season, with pig iron production at steel mills declining. Moreover, steel mills' coke inventory is at a medium-to-high level, lacking restocking demand. Purchases are mainly made as needed, with control over arrivals. In summary, downstream demand is weak. This week, coke prices are expected to remain in the doldrums, and there is an expectation of a fourth round of price reductions next week. [SMM Steel]