[SMM coal and coke daily briefing] 20250617

[SMM Daily Briefing on Coal and Coke]

Coking Coal Market:

In Linfen, low-sulphur coking coal is quoted at 1,180 yuan/mt. In Tangshan, low-sulphur coking coal is quoted at 1,200 yuan/mt.

In terms of raw material fundamentals, June is Safety Production Month, and the current market is still in a downward phase. As a result, the production enthusiasm of most coal mines has declined, leading to a slight tightening of coking coal supply. However, coal mines have high inventory levels, which is difficult to digest in the short term. Downstream buyers are purchasing as needed, and the overall trading atmosphere is sluggish. This week, prices for some coal types may continue to decline.

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, affected by environmental protection and inventory accumulation, some coking enterprises have slightly cut production, leading to a tightening of coke supply. On the demand side, steel mill profits are moderate, and there have been no large-scale maintenance activities. There is a rigid demand for coke, but pig iron production has peaked, and steel mills have the intention to continue driving down coke prices. Some steel mills are controlling arrivals and lack the willingness to purchase. In summary, the market sentiment is weak, and there is an expectation for a fourth round of price reduction for coke this week. [SMM Steel]