[SMM Coal and Coke Daily Briefing] 20251126

[SMM Daily Brief Review of Coal and Coke]

Coking Coal Market:

The quoted price of low-sulphur coking coal in Linfen is 1,580 yuan/mt. The quoted price of low-sulphur coking coal in Tangshan is 1,610 yuan/mt.

In terms of raw material fundamentals, the supply recovery of coal mines is slow with limited increases, but the wait-and-see sentiment in the market has increased, and fear of high prices has emerged. As a result, the price of coking coal has declined, the failed transaction rate of online auctions has increased, and downstream procurement sentiment remains cautious. In the short term, coking coal prices are still expected to decline.

Coke Market:

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

In terms of supply, coke enterprises have seen profit recovery, with operating rates rising and coke supply gradually increasing. However, coke shipments from coke enterprises are somewhat restricted, leading to a slight increase in coke inventory for some coke enterprises. On the buyer side, some steel mills are undergoing maintenance, and coupled with the off-season in the finished steel market, seasonal declines in demand for coke have occurred. Moreover, steel mills' coke inventories remain at normal levels, leading to a slowdown in the pace of coke procurement and weak restocking intentions. In summary, the short-term coke market is expected to remain in the doldrums, with most steel mills already inclined to reduce coke prices. [SMM Steel]