[SMM Daily Brief Review of Coking Coal and Coke]
Coking coal market:
Linfen low-sulphur coking coal was quoted at 1,450 yuan/mt. Tangshan low-sulphur coking coal was quoted at 1,490 yuan/mt.
In terms of coking coal, coal mines maintained normal operations, and coking coal production was stable. Recently, downstream inquiries increased and transactions improved, easing inventory pressure at coal mines. In addition, there were pre-sales, which supported optimistic sentiment among mines. Prices of some coal varieties that had previously fallen excessively, as well as high-quality coking coal resources, are expected to edge up slightly. In the short term, the coking coal market may remain generally stable with slight rise.
Coke market:
The nationwide average price of first-grade metallurgical coke, dry-quenched, was 1,735 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke, dry-quenched, was 1,595 yuan/mt. The nationwide average price of first-grade metallurgical coke, wet-quenched, was 1,390 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke, wet-quenched, was 1,300 yuan/mt.
In terms of supply, with the Two Sessions concluded, coke enterprises raised their operating rates somewhat, and shipments improved. Inventory pressure on coke at most coke enterprises eased, and supply remained stable with a slight increase. Demand side, blast furnaces in Hebei resumed operations and production, and hot metal production is expected to increase. In addition, steel mill profits improved somewhat, and finished steel shipments also improved, boosting steel mills' production enthusiasm and strengthening their purchase willingness for coke. Overall, coke market fundamentals improved, but the market is still in a wait-and-see mood. In the short term, the coke market may remain stable.[SMM Steel]
