[SMM Coking Coal and Coke Daily Brief Commentary]
Coking coal market:
Low-sulphur coking coal in Linfen was quoted at 1,920 yuan/mt.
Coking coal, June is the Safety Production Month, with strict safety inspections in major coking coal producing areas, limiting the release of mine capacity, and keeping coking coal supply persistently tight. At present, presale orders at various mines were full and inventory stayed low; mines showed a strong willingness to hold prices firm. Premiums in online auctions stayed high, and quotes for some high-quality and scarce coal grades continued to be raised. Overall market trading activity remained at a high level, and the coking coal market may hold up well in the short term.
Coke market:
The nationwide average price of quasi-first-grade metallurgical coke (CDQ) was 1,870 yuan/mt.
In terms of supply, coking coal prices continued to rise, and raw material costs for charging stayed high, continuously squeezing profit margins for coke enterprises and weakening their willingness to produce, leading to a slight pullback in coke production. At this stage, coke enterprises’ shipments proceeded smoothly, and coke inventory at plants continued to decline. Demand side, downstream steel mills operated normally, blast furnace operating rates stayed high, and there was stable rigid demand for coke. In some regions, steel mills saw insufficient arrivals of coke, and restocking demand increased somewhat. Overall, the current coke market’s supply-demand pattern remained tight; in the short term, the coke market will continue to hold up well, with an overall positive price trend. [SMM Steel]
