Latest Update in the SMM Coal Market

[SMM Coking Coal and Coke Daily Brief] Supply side, after the first round of coke price increases was implemented, coking enterprises saw losses reduced, production enthusiasm improved slightly, and coke supply increased slightly. Demand side, recent rain and snow affected road transport, some steel mills with low inventory raised purchasing enthusiasm, while most other steel mills already maintained coke inventory at reasonable levels, mainly purchasing as needed. Overall, coke cost support remains strong; after the first round of increases took effect, the market still holds some bullish expectations, and the coke market is likely to hold up well in the short term, generally stable with a slight rise.

[SMM Daily Coking Coal and Coke Briefing] Supply side, some coking plants have implemented minor production cuts due to losses and environmental protection inspections, while most others maintain normal production, resulting in relatively stable coke supply. Demand side, recent rain and snow have affected road transportation, prompting some steel mills with low inventory to increase purchasing activity; however, most other steel mills already have coke inventories at reasonable levels and primarily purchase as needed. Overall, coke costs provide strong support, and coking plants are cutting output due to losses. In the short term, the coke market may hold up well, and the first round of coke price increases may be implemented on Friday.

[SMM Coking Coal and Coke Daily Briefing] In terms of news, market rumors suggest that the first round of coke price increases is expected to be implemented this Friday. In terms of supply, recent environmental protection alerts in North China, coupled with the fact that most coking enterprises are operating at a loss, have suppressed production enthusiasm, leading to expectations of a slight reduction in coke supply. On the demand side, steel mills have largely completed their pre-Chinese New Year restocking, with their coke inventories at reasonable levels. Additionally, end-use demand for finished steel products remains weak, prompting steel mills to adopt a cautious approach toward coke procurement. Overall, with both supply and demand for coke remaining weak and cost support still in place, the coke market is likely to stabilize in the short term, though there remains some expectation for the first round of price increases to be implemented.

[SMM Coking Coal and Coke Daily Briefing] Supply side, coking costs stabilized, with most coking enterprises still incurring losses and showing average production enthusiasm. Demand side, steel mills have rigid demand for coke, but due to poor end-use consumption of finished products and the impact of environmental protection policies, hot metal production is more likely to decrease than increase. Current market sentiment is predominantly wait-and-see, with most steel mills purchasing coke as needed. In summary, steel and coking enterprises may remain in a game of tug-of-war in the short term.

[SMM Coking Coal and Coke Daily Brief] Supply side, coking plants are generally in a loss-making position, and the first round of coke price increases has encountered resistance, dampening production enthusiasm. Some coking plants are preparing to cut production due to losses, leading to expectations of tightening coke supply. Demand side, end-use demand for finished steel lacks significant improvement, and hot metal output growth at steel mills is limited. Steel mills remain cautious in their coke purchasing sentiment, with most maintaining medium to high inventory levels. Subsequently, they will primarily purchase coke as needed. In summary, steel mills show limited willingness to accept coke price hikes, and the standoff between coking plants and steel mills continues. The coke market is expected to remain stable this week.

[SMM Coking Coal and Coke Daily Briefing] Supply side, some coking plants have increased production enthusiasm due to smooth shipments and inventory reduction, while most coking plants maintain normal production and continue to focus on active shipments. Demand side, end-use consumption of finished products is in the off-season, with the price center shifting downward and steel mill profits declining. Additionally, as coke inventory at steel mills remains at medium to high levels, resistance to coke price hikes has intensified, and purchasing is mainly conducted as needed. In summary, the competition between coking plants and steel mills has intensified, and the coke market may stabilize temporarily next week.

[SMM Daily Coking Coal and Coke Brief] Supply side, inventory is gradually being drawn down, and coking plants maintain moderate production enthusiasm, with some plants slightly increasing output. Demand side, end-use demand for finished steel is in the off-season, coupled with some steel mills delaying blast furnace production resumptions, hot metal output is expected to decline, weakening the rigid demand for coke. Additionally, steel mills' coke inventory remains high, leading to purchasing as needed and low restocking willingness. Overall, the first round of coke price increases has been temporarily shelved, and the coke market may remain stable in the short term.

[SMM Coking Coal and Coke Daily Brief] Supply side, coke enterprises maintained moderate production enthusiasm, with relatively stable coke production, focusing on active shipments, and downstream purchase enthusiasm was moderate, leading to a decline in coke inventory at coke enterprises. Demand side, affected by the off-season, daily average hot metal production at steel mills was expected to decrease, and with coke inventory at steel mills mostly at reasonable levels, purchases were mainly based on demand, while the coke price increase was temporarily not accepted. In summary, market sentiment for ferrous metals weakened, steel mills showed resistance to the first round of coke price increases, and in the short term, coke and steel enterprises may be in a game state.

[SMM Daily Coking Coal and Coke Briefing] Supply side, coking plants face increasing losses, dampening production willingness, but downstream purchase enthusiasm remains moderate, leading to gradual coke destocking at coking plants. Demand side, hot metal production at steel mills has pulled back, reducing coke procurement enthusiasm. Additionally, most steel mills’ coke inventory levels are currently reasonable, leaving limited room for further inventory buildup. Overall, coke supply-demand is trending toward balance. The coke market may stabilize in the short term, with the first round of price increases likely delayed.

[SMM Coking Coal and Coke Daily Brief] Supply side, coking plants are in a loss, and the first round of increase has not been implemented, suppressing production enthusiasm. However, downstream purchase enthusiasm has improved, overall coke inventory at coking plants continues to decline, and some coking plants have a reluctance to sell. Demand side, steel mill profits are gradually recovering, production enthusiasm has increased, some low-inventory steel mills have accelerated the pace of restocking for coke, while traders entering the market are diverting supply, downstream demand for coke has significantly increased. In summary, with downstream demand improving and cost support strengthening, the coke market is likely to hold up well this week, and the first round of coke price increase is highly likely to be implemented.