[SMM Coal and Coke Daily Briefing] 20251117

[SMM Coal and Coke Daily Briefing]

Coking Coal Market:

The offer price for low-sulphur coking coal in Linfen was 1,710 yuan/mt. The offer price for low-sulphur coking coal in Tangshan was 1,620 yuan/mt.

In terms of raw material fundamentals, mine production resumptions were slower than expected, and safety and environmental protection inspections further suppressed production release. Market sentiment cooled, with downstream buyers maintaining a cautious procurement attitude and showing strong resistance to high-priced coal grades. Online auctions weakened somewhat. However, mines primarily focused on fulfilling previous orders, keeping offers firm. In the short term, coking coal prices are expected to remain stable.

Coke Market:

The nationwide average price for first-grade metallurgical coke - dry quenching was 1,955 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching was 1,815 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching was 1,590 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching was 1,500 yuan/mt.

Supply side, the fourth round of coke price increases was implemented, improving coke enterprise profits. However, production costs for coke enterprises remained high, and recent environmental protection inspections impacted coke supply, leading to a continued decline in coke production. Demand side, steel mill finished product profits were under pressure, and coupled with an increase in blast furnace maintenance plans at steel mills this week, daily average hot metal production was expected to decline, potentially reducing rigid demand for coke. In summary, the supply-demand imbalance in the coke market eased somewhat, and short-term coke prices are expected to remain stable.[SMM Steel]