[SMM Coke & Coal Daily Brief Review] 20250616

[SMM Daily Commentary on Coking 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, most coal mines are operating normally, while some have halted production due to accidents, leading to a tightening in coking coal supply. However, the market remains in a downturn, with strong bearish sentiment. Downstream buyers are cautious in their purchases, showing low willingness to restock actively. The overall trading atmosphere is sluggish, and coal mine shipments have not improved. This week, coking coal prices may 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, most coking enterprises have seen profit recovery and maintained stable production. Some coking enterprises have slightly cut production due to losses and inventory accumulation, leading to a tightening in coke supply. On the demand side, steel mill profits are moderate, with no large-scale maintenance occurring. There is a certain rigid demand for coke, but most steel mills have coke inventories at medium to high levels, lacking restocking needs. They mainly purchase as needed, with some steel mills with high coke inventories even controlling arrivals. In summary, the coke market remains in the doldrums, and there is an expectation for a fourth round of price cuts in coke this week. [SMM Steel]