[SMM Coal and Coke Daily Briefing] 20251104

[SMM Daily Coking Coal and Coke Review]

Coking Coal Market:

The offer price for low-sulphur coking coal in Linfen was 1,610 yuan/mt. The offer price for low-sulphur coking coal in Tangshan was 1,620 yuan/mt.

Fundamentals for the raw material: the overall pace of production resumptions at coal mines was slow. Additionally, mainstream coal mines in Shandong recently received a stockpiling task assigned by the provincial government, requiring total inventory to be increased to 3.3 million mt by November 15 (the reserve inventory must be maintained until approved by the provincial government for sale, typically after the following year's heating season ends). This led to regional supply tightness, supporting coking coal prices. Furthermore, online auction results were good, boosting market confidence. In the short term, coking coal prices are expected to be generally stable with a slight rise.

Coke Market:

The nationwide average price for first-grade metallurgical coke - dry quenching was 1,845 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching was 1,705 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching was 1,490 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching was 1,400 yuan/mt.

News-wise, most steel mills have accepted the third round of coke price increases, which is expected to take effect at 00:00 on November 5. In terms of supply, coke plants are shipping smoothly, with coke inventory at plants remaining low. Affected by rising costs, coke plants have insufficient willingness to produce, making it difficult to increase coke supply. Demand side, hot metal production of steel mill blast furnaces has not declined significantly, and coke inventory at some mills has decreased, leading to high demand for coke restocking. In summary, the coke market fundamentals are tight, coupled with strong cost support. The coke market is expected to hold up well in the short term, and the third round of price increases is about to be implemented.[SMM Steel]