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Coking coal market:
The low-sulphur coking coal in Linfen was quoted at 1,500 yuan/mt, while that in Tangshan was quoted at 1,490 yuan/mt.
Fundamentals of raw materials: Market sentiment remained relatively stable. Purchasing pace from coke plants and steel mills gradually slowed down, speculative demand cooled, and spot coking coal saw price cuts for sales. Online auction failures increased. However, overall mine inventory pressure was relatively small, with strong reluctance to budge on prices. Some tight coal varieties still had some room for price increases.
Coke market:
The nationwide average price of first-grade metallurgical coke (dry quenching) stood at 1,715 yuan/mt, while that of quasi-first-grade (dry quenching) was 1,575 yuan/mt. The nationwide average price of first-grade (wet quenching) was 1,370 yuan/mt, and quasi-first-grade (wet quenching) was 1,280 yuan/mt.
Market news: Mainstream coke producers have implemented the sixth round of coke price increases by 50-55 yuan/mt. Supply side: Recent profit recovery at coke plants boosted production enthusiasm, leading to increased coke supply. However, coke plants maintained smooth shipments with their coke inventory still at low levels. Demand side: Steel mills saw improved arrivals and maintained good profits, sustaining high purchasing enthusiasm for coke. In summary, limited supply growth and strong cost support may keep the coke market generally stable with slight rise in the short term, with market expectations for the sixth round of price hikes.[SMM Steel]
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