SMM Coal and Coke Daily Brief Review 20251217

[SMM Daily Coal & Coke 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 1,480 yuan/mt.

Fundamentals, raw material side: Coal mines focused on safety in production, with supply maintaining the status quo. Downstream, affected by weakening market sentiment, wait-and-see sentiment was relatively heavy. Order signing at coal mines performed averagely, with some high-priced coal types experiencing inventory buildup. However, domestic coal mine safety incidents still occurred, leading to a localized tightening of coking coal supply, providing some support for coking coal prices. In summary, coking coal prices have limited downside room in the short term.

Coke Market:

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

Supply side, multiple regions reactivated orange alerts for heavy pollution, leading coke enterprises to cut production passively, tightening supply. However, shipments from coke enterprises were hindered, with inventory buildup still occurring. Demand side, the market was in the off-season, end-use consumption demand was weak, and environmental protection-related controls intensified. Maintenance at steel mill blast furnaces increased, daily average hot metal production decreased, and the rigid demand for coke further reduced. Steel mills primarily purchased as needed. In summary, coke prices remained under pressure, market sentiment was pessimistic, and the coke market may be in the doldrums in the short term. [SMM Steel]