[SMM Coal and Coke Daily Briefing] 20251111

[SMM Coal and Coke Daily Briefing]

Coking Coal Market:

The offer price for low-sulphur coking coal in Linfen is 1,670 yuan/mt. The offer price for low-sulphur coking coal in Tangshan is 1,620 yuan/mt.

In terms of raw material fundamentals, safety inspections and strict control of overproduction are being implemented simultaneously, leading to a continued tight supply of coking coal. Downstream procurement demand has seen a slight rebound, and recent online auction transaction prices have increased to varying degrees. However, due to poor downstream profits, buyers have begun to adopt a wait-and-see approach towards some high-priced coal varieties. Subsequently, coking coal prices are expected to remain generally stable with a slight rise.

Coke Market:

The nationwide average price for first-grade metallurgical coke - dry quenching is 1,900 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching is 1,760 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching is 1,540 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching is 1,450 yuan/mt.

Supply side, after the implementation of the third round of coke price increases, losses at coke enterprises have eased. Coke sales are normal, and coke inventory at plants remains low. However, as coke enterprises are currently near the break-even point, their willingness to increase production is moderate, maintaining the previous production status. Demand side, with steel prices weakening and steel mill profit margins shrinking, blast furnace maintenance plans are expected to increase further, impacting the rigid demand for coke. In summary, further coke price increases face resistance, and in the short term, coke and steel enterprises have entered a stage of stalemate.[SMM Steel]