[SMM Daily Review on Coal and Coke] 20250109

SMM Daily Review on Coal and Coke

Coking Coal Market:

The quotation for low-sulfur primary coking coal in Linfen is 1,450 yuan/mt, while in Tangshan it is 1,500 yuan/mt.

In terms of fundamentals, the sixth round of coke price cuts has been fully implemented, leading to shrinking profits for coke enterprises and more cautious raw material procurement. Over half of the online auctions for coking coal failed, with transaction prices mostly declining and only a few increasing. Prices for low-sulfur primary coking coal and fat coal remained relatively firm, with narrower declines. Pithead prices at coal mines are still stable with a weak trend. In summary, the coking coal market is expected to continue fluctuating downward.

Coke Market:

The nationwide average price for Grade I metallurgical coke (dry quenching) is 1,900 yuan/mt, while for Quasi-Grade I metallurgical coke (dry quenching) it is 1,760 yuan/mt. The nationwide average price for Grade I metallurgical coke (wet quenching) is 1,540 yuan/mt, and for Quasi-Grade I metallurgical coke (wet quenching) it is 1,458 yuan/mt.

In terms of supply, coke enterprises have maintained stable production, with moderate sales performance. Only a few coke enterprises have slightly reduced production due to environmental protection factors. On the demand side, steel mills are gradually releasing winter stockpiling policies at year-end to improve sales, but transactions remain sluggish, with pessimistic expectations and continued negative feedback in the market. Steel mills are increasingly seeking profits from raw materials. In summary, coke prices are still expected to face another round of price-cutting negotiations before the year-end.

【SMM Steel】