[SMM Coal and Coke Daily Briefing] 20251112

[SMM Daily Coking Coal and Coke Review]

Coking Coal Market:

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

Fundamentals for the raw material: mine production release is limited, coking coal supply remains tight. Recently, downstream purchases have been active, the online auction atmosphere for coking coal is positive, and mine order signing is smooth. However, with coking coal prices at high levels, fear of heights sentiment has emerged in the market, leading to cautious purchasing. 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 quench is 1,900 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quench is 1,760 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quench is 1,540 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quench is 1,450 yuan/mt.

Supply side, after three rounds of coke price increases, coking coal prices continue to rise, coke enterprise profit recovery falls short of expectations, suppressing production willingness. Furthermore, some loss-making coke enterprises still actively implement production cuts, making it difficult for coke supply to be released. Demand side, blast furnace operations at steel mills are relatively stable, and production in some regions has recovered after environmental protection restrictions were lifted, maintaining procurement demand for coke. However, the steel market has entered the off-season, finished steel sales are below expectations, steel mill profits have declined, and maintenance efforts have increased, leading to purchasing as needed being the primary strategy. In summary, the short-term coke market is expected to operate steadily for now, and the difficulty of further coke price increases has risen.[SMM Steel]