[SMM Coking Coal and Coke Daily Brief Commentary] 20260309

[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.

Coking coal side, mines continued to resume production, and coking coal supply overall showed an increasing trend. Affected by the first round of coke price cuts, spot market buying sentiment was weak. However, as the impact of the US-Iran war expanded, the energy crisis led market participants to start seeking alternatives—using coal as a substitute for oil—therefore bullish sentiment toward coking coal and coke surged, and coking coal prices may remain generally stable with slight rise in the short term.

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 supply, during the major meetings, apart from some coke enterprises in areas such as Tangshan, Hebei being passively subject to production restrictions of 20%-30%, most enterprises in other regions maintained normal production, and supply was relatively loose. Demand side, due to the Two Sessions, some steel mills proactively implemented production cuts, hot metal output continued to decline this week, and rigid demand for coke continued to weaken. Overall, coke fundamentals were weak, but driven by gains in coke futures, bearish sentiment temporarily dissipated, and the coke market may remain temporarily stable in the short term. [SMM Steel]