[SMM Coal and Coke Daily Briefing] 20251125

[SMM Daily Coal and Coke Briefing]

Coking Coal Market:

Low-sulphur coking coal in Linfen was offered at 1,670 yuan/mt. Low-sulphur coking coal in Tangshan was offered at 1,610 yuan/mt.

Fundamentals for the raw material, mines still faced safety and environmental protection inspections, making it difficult for coking coal supply to increase significantly. However, recent market sentiment weakened, with coke and steel enterprises slowing down their procurement pace and the proportion of failed online auctions increasing, highlighting market transaction pressure. In the short term, coking coal prices may remain under pressure.

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, coke enterprise profits improved, leading to good production enthusiasm, coupled with the recent elimination of the impact from environmental protection-related controls in Hebei, some coke enterprises increased production, resulting in an increase in coke output. Demand side, steel mill profits were on the edge of losses, with the scope of blast furnace maintenance and production cuts expanding and hot metal output declining, steel mills reduced their demand for coke, mainly purchasing as needed, and some steel mills showed intentions to drive down coke prices. In summary, the coke market is expected to operate generally stable with slight fall in the short term.[SMM Steel]