[SMM Coal and Coke Daily Brief] 20251212

[SMM Coal and Coke Daily Briefing]

Coking coal market:

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

In terms of raw material fundamentals, some mines remain suspended or under production cuts, with coking coal supply recovering slowly. Affected by the second round of coke price cuts, downstream purchasing sentiment is negative. Mines generally report poor follow-up orders, with inventory pressure emerging at some mines, and expectations for further price declines in certain coal types.

Coke market:

The nationwide average price for first-grade metallurgical coke-dry quenching is 1,845 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke-dry quenching is 1,705 yuan/mt. The nationwide average price for first-grade metallurgical coke-wet quenching is 1,490 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke-wet quenching is 1,400 yuan/mt.

Supply side, the second round of coke price cuts has been implemented, significantly squeezing coke enterprise profits. Additionally, heavy pollution weather emergency response measures have been activated in several regions recently, leading some coke enterprises to intensify production cuts. However, sales remain sluggish, and inventory has accumulated to varying degrees at some coke enterprises. Demand side, current coke inventory at steel mills is generally at reasonable levels, but impacted by continuously declining steel prices and weak end-use consumption, profit margins have further narrowed. Blast furnace maintenance at steel mills has expanded, reducing rigid demand for coke, resulting in generally low restocking willingness among steel mills. In summary, the coke market is expected to remain in the doldrums in the short term, with expectations for a third round of price cuts.[SMM Steel]