[SMM Coal and Coke Daily Briefing] 20251202

[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, mines maintained normal production, production increased slowly, market conditions weakened, spot coking coal transactions were average, downstream procurement was cautious, new orders signed by mines were poor, coking coal inventory pressure increased, short-term coking coal prices are expected to continue to decline.

Coke market:

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

Supply side, after coke price cuts, coking plants still had profits, production was stable with some increase, but coking plants faced shipment obstacles, some coking plants saw significant accumulation of coke inventory. Demand side, the first round of coke price reduction was implemented, steel mill profits saw minor recovery, but finished steel market was in the traditional off-season, sales were poor, steel mills intensified maintenance, daily average hot metal production declined, coupled with recent coke inventory at steel mills reaching reasonable levels, steel mill procurement pace slowed down. In summary, end-use consumption of finished steel performed poorly, steel mills still had intention to suppress coke prices, short-term coke market may be in the doldrums.[SMM Steel]