[SMM Coking Coal Daily Market Review] 20250901

[SMM Daily Coking Coal and Coke Brief]
Coking Coal Market:
Low-sulphur coking coal in Linfen is offered at 1,470 yuan/mt. Low-sulphur coking coal in Tangshan is offered at 1,450 yuan/mt.
Fundamentals of raw materials: With the parade about to begin, coal mines are cautious in production and face no significant inventory pressure. Mines show strong reluctance to budge on prices, but market wait-and-see sentiment has increased noticeably. Finished steel futures have weakened, and trading activity has cooled. In the short term, coking coal prices are expected to remain in the doldrums, with some room for a decline.
Coke Market:
The nationwide average price for first-grade metallurgical coke - dry quench is 1,845 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quench is 1,705 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quench is 1,490 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quench is 1,400 yuan/mt.
On the news front, a steel mill in Northwest China has initiated a coke price reduction of 50-55 yuan/mt, effective from 00:00 on September 4. Supply side: With the parade about to begin, coke producers in Shandong, Henan, and other regions have implemented production restrictions, leading to a tightening supply. Demand side: Recently, steel mills in the Beijing-Tianjin-Hebei region have also implemented short-term production restrictions, resulting in a pullback in hot metal output and weakening rigid demand for coke. However, some steel mills have low coke inventory and are urging deliveries. In summary, coke supply and demand are both weak, coupled with a pullback in futures, and market expectations for a price decline have emerged. In the short term, the coke market is expected to remain in the doldrums.[SMM Steel]