[SMM Coal and Coke Daily Briefing] 20251222

[SMM Coal and Coke Daily Briefing]

Coking coal market:

Low-sulphur coking coal in Linfen was offered at 1,600 yuan/mt. Low-sulphur coking coal in Tangshan was offered at 1,480 yuan/mt.

Raw material fundamentals, production resumptions at mines that had cut production proceeded at a slow pace, coking coal supply tightens, market sentiment improved somewhat, prices of some coal types rose slightly, but downstream buyers still mainly made just-in-time procurement, and coupled with the impact of the coke price cut, market participants remained cautious, short-term coking coal prices still had some downside room.

Coke market:

The nationwide average price for first-grade metallurgical coke - dry quench was 1,790 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quench was 1,650 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quench was 1,440 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quench was 1,350 yuan/mt.

Supply side, the third round of coke price cuts was implemented, and the pace of coking coal price declines slowed down, most coke enterprises incurred losses, and strict weather pollution controls were in place, some coke enterprises passively faced production restrictions, coke supply tightens. Demand side, end-user finished steel demand performance remained in the doldrums, daily average hot metal production at steel mills continued to decrease, demand for coke weakened, just-in-time procurement was the main approach. In summary, the coke supply-demand balance remained tilted towards loose, after the third round of price cuts, the short-term coke market may operate generally stable with slight fall.[SMM Steel]