[SMM Coal and Coke Daily Briefing] 20251121

[SMM Daily Coking Coal and Coke Briefing]

Coking Coal Market:

The offer price for low-sulphur coking coal in Linfen is 1,710 yuan/mt. The offer price for low-sulphur coking coal in Tangshan is 1,650 yuan/mt.

Fundamentals for raw materials: mines face production constraints due to factors such as safety inspections and environmental protection. However, production has gradually resumed recently, leading to an increase in output. Coupled with an increase in failed online auctions, market pessimism has grown. Coking coal prices are expected to decline next week.

Coke Market:

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

Supply side, coke enterprises' profitability has improved somewhat, with operating rates seeing a slight rebound. Shipment conditions are relatively good, with most coke enterprises maintaining low inventory levels. Demand side, the recovery in steel mill profits has fallen short of expectations. Additionally, some steel mills have replenished their coke inventories to reasonable levels, leading to a weakening in procurement demand for coke and the implementation of purchase controls. In summary, the supply-demand imbalance for coke has eased somewhat. The coke market is expected to operate steadily next week, but a price decrease cannot be ruled out.[SMM Steel]