[SMM Coal and Coke Daily Briefing] 20251203

[SMM Daily Coal & Coke Brief]

Coking coal market:

Low-sulphur coking coal in Linfen is offered at 1,580 yuan/mt. Low-sulphur coking coal in Tangshan is offered at 1,530 yuan/mt.

Fundamentally, mines that previously cut production are gradually resuming operations, while some mines are reducing output due to safety concerns, leading to limited overall supply growth. However, downstream procurement remains cautious, with transaction prices dropping slightly in online auctions and some lots failing to sell. In the short term, coking coal prices still have room to decline.

Coke market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,900 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,760 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,540 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,450 yuan/mt.

Supply side, coke producers' profits are moderate, and their enthusiasm for production has not declined, keeping coke supply at high levels. However, market expectations are cooling, with coke companies facing sluggish sales and increasing pressure. Demand side, maintenance at steel mills is rising, and sales pressure for finished products remains unchanged, keeping market pessimism strong and reducing procurement enthusiasm for coke. Overall, the coke supply situation remains loose, and the market is expected to stay in the doldrums.[SMM Steel]