[SMM Daily Brief Review of Coking Coal and Coke] 20260403

[SMM Daily Brief Review on Coking Coal and Coke]

Coking Coal Market:

Low-sulphur coking coal in Linfen was quoted at 1,510 yuan/mt. Low-sulphur coking coal in Tangshan was quoted at 1,560 yuan/mt.

Coking coal, most coal mines maintained stable production, but an accident occurred at a coal mine in Lvliang, Shanxi, leading to localized tightness in coking coal supply. Affected by the decline in futures, downstream coke and steel enterprises became more cautious in procurement, market wait-and-see sentiment increased, coal varieties that had seen excessive gains earlier faced greater shipment pressure, and the failure rate of online auctions continued to rise. In the short term, the coking coal market may remain in the doldrums.

Coke Market:

The nationwide average price of first-grade metallurgical coke, dry-quenched, was 1,790 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke, dry-quenched, was 1,650 yuan/mt. The nationwide average price of first-grade metallurgical coke, wet-quenched, was 1,440 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke, wet-quenched, was 1,350 yuan/mt.

In terms of supply, coking enterprises saw some decline in coal costs for charging into furnaces. In addition, the first round of coke price increases had been fully implemented, significantly narrowing losses at coking enterprises and improving production enthusiasm. Coke supply remained stable with a slight increase. Meanwhile, downstream demand was moderate, coking enterprises' shipments were smooth, and their own inventory continued to decline. Demand side, steel mills gradually resumed blast furnace production, and daily average hot metal production continued to increase, boosting rigid demand for coke. However, steel mills had received coke arrivals well recently, and most steel mills' coke inventory stayed at mid-levels, with overall procurement sentiment remaining average. In summary, coke supply and demand fundamentals have turned loose. Coupled with the recent weakening of cost support for coke, the coke market may remain temporarily stable in the short term, and further increases will be difficult.[SMM Steel]