[SMM Coal and Coke Daily Briefing] 20250926

[SMM Coal and Coke Daily Briefing]

Coking Coal Market:

The low-sulphur coking coal offer in Linfen is 1,510 yuan/mt. The low-sulphur coking coal offer in Tangshan is 1,450 yuan/mt.

In terms of raw material fundamentals, most mines are operating normally, and downstream procurement enthusiasm has increased, leading to active market transactions and smooth shipments from mines, with inventories continuing to decline. However, downstream profits have worsened, limiting the upside for coking coal prices. The coking coal market is expected to operate generally stable with a slight rise in the near term.

Coke Market:

The nationwide average price for first-grade metallurgical coke - dry quenching is 1,735 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching is 1,595 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching is 1,390 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching is 1,300 yuan/mt.

Supply side, recent increases in coal costs for coking plants have narrowed profits, forcing them to initiate coke price hikes. However, without significant losses, production enthusiasm remains moderate, and supply is basically stable. With the National Day holiday approaching, shipments from coking plants have improved. Demand side, steel mills' profitability is moderate, and hot metal production remains high. Coupled with the upcoming National Day holiday, there is some restocking demand for coke. However, steel products continue to see inventory buildup, leading to resistance to coke price hikes. In summary, pre-holiday restocking space is limited, and the short-term coke market is expected to remain in a deadlock, with the first round of coke price increases anticipated to be implemented.[SMM Steel]