[SMM Daily Coking Coal and Coke Briefing]
Coking Coal Market:
The low-sulphur coking coal offer in Linfen was 1,650 yuan/mt. The low-sulphur coking coal offer in Tangshan was 1,450 yuan/mt.
In terms of raw material fundamentals, some mines have already entered the holiday period, and with the Chinese New Year approaching, the number of mines suspending production increased this week. Coking coal supply is expected to tighten in the short term. Some coking plants have largely completed winter stockpiling and restocking, leading to a decrease in demand. Coal mines received fewer new orders, and the atmosphere in online auctions weakened. In the short term, coking coal prices may remain in the doldrums.
Coke Market:
The nationwide average price for first-grade metallurgical coke - dry quenching was 1,790 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching was 1,650 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching was 1,440 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching was 1,350 yuan/mt.
Supply side, the first round of coke price increases was implemented last week, leading to some recovery in coking plant profits. Coking plants maintained moderate production enthusiasm, and coke supply remained relatively stable. Demand side, end-use demand for steel showed no improvement, and steel mill profits remained poor. The number of blast furnaces undergoing maintenance and shutdowns increased, leading to a weakening in rigid demand for coke. Currently, steel mills are adopting a purchasing-as-needed strategy. Overall, coke supply and demand are moving towards balance, and with an increase in steel mill maintenance plans, the coke market is expected to remain stable in the short term.[SMM Steel]
