[SMM Coal and Coke Daily Briefing] 20251208

[SMM Coal and Coke Daily Briefing]

Coking coal market:

Low-sulphur coking coal in Linfen was offered at 1,500 yuan/mt. Low-sulphur coking coal in Tangshan was offered at 1,530 yuan/mt.

Raw material fundamentals, coking coal supply growth was slow, mine offers were successively lowered, and shipments improved somewhat. However, overall buyer procurement pace slowed down, market sentiment was weak, and coupled with the recent frequent price drops in online auctions, market sentiment remained sluggish, with most participants cautiously watching. Some high-priced coal grades still had pullback expectations.

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.

Supply side, coke enterprises' profit per mt of coke was moderate, operating enthusiasm remained high, and coke production was stable with some increase. However, downstream demand weakened, and coke enterprise inventory pressure gradually increased. Demand side, steel mill operations were average, daily average hot metal production continued to decline, rigid coke demand was under pressure and pulled back, and coupled with poor end-user finished steel market demand, steel prices fluctuated downward. Moreover, approaching year-end, steel mill maintenance activities increased, and coke demand was expected to continue weakening. In summary, the short-term coke market may be in the doldrums, with expectations for a second round of price cuts.