[SMM Coal and Coke Daily Review] The Short-Term Coke Market May Fluctuate Relatively Stable with a Weak Trend

On December 30, SMM Coking Coal News,

Coking Coal Market:

Low-sulfur primary coking coal in Linfen was quoted at 1,450 yuan/mt. Low-sulfur primary coking coal in Tangshan was quoted at 1,600 yuan/mt.

In terms of supply, some coal mines have completed their annual production tasks and started maintenance shutdowns, leading to a pullback in supply. Recently, coking coal prices have been weak, with downstream coke producers and traders holding a pessimistic outlook, resulting in cautious purchasing. Coal mine transaction orders remained limited, sales were sluggish, and inventory continued to accumulate. Coupled with a weakening atmosphere in online auctions, transaction prices continued to decline, with frequent auction failures. Coking coal prices remain under pressure.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) was 1,955 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (dry quenching) was 1,815 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) was 1,590 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (wet quenching) was 1,508 yuan/mt.

In terms of supply, coke producers still have profits, maintaining a moderate production enthusiasm with relatively stable operations. However, due to cautious procurement by downstream steel mills and a wait-and-see attitude among traders, some coke producers faced sluggish sales and accumulated inventories. On the demand side, steel mills implemented significant production cuts, and their coke inventories remained at relatively high levels, with some mills controlling coke arrivals. Overall, the cost of coking coal for coke producers continued to decline, and while profits remain, production enthusiasm is moderate. However, with pig iron production decreasing, steel mills slowing their procurement pace, and weakening cost support for coke, the short-term coke market is expected to remain relatively stable with a weak trend.