[SMM Survey Daily Briefing on Coal and Coke] 20251021

[SMM Daily Coking Coal and Coke Review]
Coking Coal Market:
The offer price for low-sulphur coking coal in Linfen is 1,560 yuan/mt. The offer price for low-sulphur coking coal in Tangshan is 1,490 yuan/mt.
Fundamentals for raw materials: Environmental protection and safety inspections have intensified in the Wuhai area of Inner Mongolia, leading to production halts at some mines and causing a regional supply reduction of coking coal. Downstream coking and steel enterprises still have some restocking demand for coking coal, which supports its price. However, there is resistance to high-priced resources, market trading sentiment has seen a pullback, and the coking coal market is expected to operate steadily in the short term.
Coke Market:
The nationwide average price for first-grade metallurgical coke - dry quench is 1,790 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quench is 1,650 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quench is 1,440 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quench is 1,350 yuan/mt.
On the news front, steel mills have not yet responded to the second round of coke price increases. In terms of supply, coke enterprises are experiencing smooth shipments, and coke inventory remains at low levels; however, some coke enterprises are operating at a loss and have implemented production cuts, leading to a tightening coke supply. Demand side, steel mills' current hot metal production remains high, resulting in high daily consumption of coke, and steel mills with low inventory still have some restocking demand. However, finished steel consumption is weak, steel mill profits have contracted, leading to a primary purchasing strategy of buying as needed and a cautious mindset. In summary, coking and steel enterprises are in a stalemate, and the coke market is expected to operate generally stable with a slight rise in the short term. [SMM Steel]