[SMM Coal and Coke Daily Briefing]
Coking Coal Market:
The low-sulphur coking coal offer in Linfen was 1,500 yuan/mt. The low-sulphur coking coal offer in Tangshan was 1,480 yuan/mt.
In terms of raw material fundamentals, coal mines gradually resumed production, increasing coking coal supply. Over the past weekend, market inquiries increased, with some market participants believing the bottom for coking coal prices has been reached. Downstream coking and steel enterprises also gradually made purchases, improving market activity and strengthening mines' desire to hold prices firm. Coking coal prices may stabilize this week.
Coke Market:
The nationwide average price for first-grade metallurgical coke - dry quench was 1,735 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quench was 1,595 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quench was 1,390 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quench was 1,300 yuan/mt.
Supply side, recent continuous gains in futures boosted market sentiment. Coke enterprises reported good shipments, leading to a continuous decline in coke inventory, which also stimulated their production enthusiasm, resulting in an increase in coke supply. Demand side, finished steel prices rose slightly at the beginning of the week, repairing steel mill profits, and the daily average hot metal output increased, boosting rigid demand for coke and weakening steel mills' desire to push for lower coke prices. In summary, the coke supply-demand pattern gradually improved, coupled with cost side stopping falling and stabilizing. The coke market may operate steadily this week.[SMM Steel]
