[SMM Coal and Coke Daily Briefing] 20251127

[SMM Daily Coking Coal and Coke Brief]

Coking Coal Market:

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

Fundamentals of raw materials: Coal mines that suspended production due to accidents have recently resumed production, with output gradually recovering. Downstream buyers are cautious in their procurement, leading to apparent shipment pressure at mines. Transaction prices in online auctions dropped slightly, and market sentiment has weakened. In the short term, coking coal prices may remain under pressure.

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 producers' profits have improved, leading to high production enthusiasm, but sales pressure has increased. Demand side, hot metal production at steel mills is relatively stable. However, due to poor profitability at steel mills, the scope of blast furnace maintenance has expanded, weakening the rigid demand for coke. Some steel mills are controlling their arrivals. In summary, pressure for the first round of coke price reduction has increased, and the coke market may operate generally stable with a slight fall in the short term.[SMM Steel]