[SMM Coal and Coke Daily Briefing] 20251226

[SMM Coal and Coke Daily Briefing]

Coking Coal Market:

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

Raw material fundamentals, a coal mine accident occurred in Yunnan, leading to temporary shutdowns and rectifications of local mines, exacerbating the tight supply of coking coal. However, the proportion of failed online auctions remains high recently, and coking coal prices still face downward expectations, while prices for some high-quality skeletal coal types remain firm. In summary, the coking coal market is expected to operate generally stable with slight fall next week.

Coke Market:

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

In terms of supply, the impact of environmental protection inspections has weakened, and production enthusiasm has increased at some coke enterprises, but most coke enterprises are operating at a loss, leading to a decline in production willingness, resulting in an insignificant increase in coke supply. Downstream demand has not been released, and coke inventory at some coke enterprises continues to accumulate. Demand side, finished steel consumption performance is poor, steel mills are under profit pressure, maintaining a just-in-time procurement strategy for coke, with general restocking enthusiasm. Additionally, as coke inventory at steel mills is within a reasonable range, the pace of coke procurement has slowed down. In summary, the coke market supply and demand remain relatively loose, coke prices are expected to remain under pressure next week, and a fourth round of coke price cuts cannot be ruled out.[SMM Steel]