[SMM Daily Coal and Coke Review] Coke Price Cuts Are Still Expected

On December 27, SMM Coking Coal News,

Coking Coal Market:

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

In terms of supply, the annual production target is expected to be completed, and coal mine production has become more conservative. The fifth round of coke price cuts has been implemented, market sentiment remains pessimistic, and the purchasing enthusiasm of coke plants and steel mills is moderate. Bearish sentiment is spreading in the coking coal market, with online auctions continuing to fail, transaction prices continuing to decline, and the weakness in coke leading to further price drop expectations for certain coal types.

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, the current production enthusiasm of coke plants is moderate, with most maintaining previous production levels, while some coke plants are implementing production cuts due to environmental protection measures. Demand side, steel prices are fluctuating, steel mill maintenance and production cut plans are increasing, pig iron production is declining, and end-use demand remains moderate. Coke demand is under pressure, and steel mills show low purchasing enthusiasm. Overall, steel mills remain cautious in coke procurement, and with coking coal prices continuing to fall, cost-side support for coke has weakened. After the fifth round of coke price cuts, further price reductions are still expected.