[SMM Coal and Coke Daily Review] Rigid Demand for Coke Still Exists

On December 31, 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.

Recently, coal mines have been strictly addressing safety issues, with production remaining moderate. However, pig iron is at a relatively low level, raw material prices are under pressure, and market sentiment has further weakened. Outflows from warehouses have faced increased pressure, transactions are sluggish, and downstream restocking demand has further slowed. Both supply and demand are weak across the upstream and downstream sectors. In summary, the coking coal market may continue to operate stable with a weak trend.

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 enterprises maintained stable production loads, and their outflows from warehouses were moderate. Only a few coke enterprises faced increased production cuts due to environmental protection factors. Additionally, coal mines continued to offer price concessions, leaving coke enterprises with no profitability pressure. In terms of demand, finished steel prices fluctuated rangebound, while blast furnace maintenance and resumption occurred simultaneously. It is expected that the decline in pig iron production will significantly slow, and steel mills maintain rigid demand for coke. In summary, the coke market may remain temporarily stable in the short term.