[SMM Coal and Coke Daily Briefing] 20251201

[SMM Coal and Coke Daily Briefing]

Coking coal market:

Low-sulphur coking coal in Linfen was offered at 1,580 yuan/mt. Low-sulphur coking coal in Tangshan was offered at 1,610 yuan/mt.

Raw material fundamentals, production resumptions gradually occurred at mines that previously implemented production cuts, but market sentiment continued to weaken. Downstream resistance to high-priced coal varieties intensified, purchase enthusiasm waned, new orders for coal mines decreased, and many coal varieties failed to sell in online auctions. Inventory at some mines increased, and coking coal prices may remain under pressure subsequently.

Coke market:

The nationwide average price for first-grade metallurgical coke - dry quench was 1,900 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quench was 1,760 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quench was 1,540 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quench was 1,450 yuan/mt.

News-wise, the first round of coke price reduction was implemented, with a reduction of 50-55 yuan/mt. Supply side, coke enterprises' profits were moderate, and production enthusiasm was relatively high, but downstream restocking decreased, leading to increased inventory pressure for coke enterprises. Demand side, recent blast furnace maintenance at steel mills increased, coupled with no significant improvement in end-use demand for finished steel, steel mills' enthusiasm for coke procurement declined, with instances of controlling arrivals. Overall, the supply-demand pattern is trending towards looser, and the coke market is expected to be in the doldrums in the short term.[SMM Steel]