[SMM Coking Coal and Coke Daily Brief Commentary] 20260304

[SMM Coking Coal and Coke Daily Brief Review]

Coking Coal Market:

Low-sulphur coking coal in Linfen was quoted at 1,570 yuan/mt. Low-sulphur coking coal in Tangshan was quoted at 1,450 yuan/mt.

On the coking coal front, mines resumed production one after another, and coking coal supply increased gradually. However, downstream coke and steel enterprises maintained a low-inventory strategy and mainly purchased as needed. Trading sentiment was relatively sluggish, online auction market performance was moderate, and the auction-failure rate for some coal types increased. In the short term, coking coal prices may continue to edge down.

Coke Market:

The nationwide average price of first-grade metallurgical coke (CDQ) was 1,790 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke (CDQ) was 1,650 yuan/mt. The nationwide average price of first-grade metallurgical coke (wet quenching) was 1,440 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke (wet quenching) was 1,350 yuan/mt.

In terms of news, some steel mills initiated the first round of coke price cuts, with a reduction of 50-55 yuan/mt, expected to take effect on March 6 (Friday). In terms of supply, overall operating rates at coke enterprises were moderate, but downstream purchasing enthusiasm declined, leaving coke enterprises facing sales pressure. Demand side, with the Two Sessions about to convene, steel mills in some regions were slow to resume work and production under the impact of production restrictions. In addition, end-use market demand was weak, strengthening steel mills’ desire to bargain down prices for coke, with purchasing as needed as the main approach. Overall, the supply-demand imbalance in the coke market is becoming increasingly prominent, and cost support is gradually weakening. In the short term, the coke market may remain in the doldrums, and the first round of price cuts is about to take effect. [SMM Steel]