Latest Update in the SMM Coal Market

[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.

[SMM Coal and Coke Daily Brief] Supply side, recent coking coal prices have stopped falling, cost support for coke has strengthened, market sentiment is gradually improving, some downstream buyers are actively purchasing, coke enterprises are shipping smoothly, and production enthusiasm has increased. Demand side, some steel mills have recently resumed production of blast furnaces, hot metal production has increased, daily consumption of coke has risen, and actual procurement volume continues to grow. Overall, with improving fundamentals, the coke market may hold up well in the short term, generally stable with a slight rise.

[SMM Coal and Coke Daily Briefing] Supply side, recent futures rose continuously, boosting market sentiment. Coke enterprises reported good shipments, with coke inventory continuing to decline, which also stimulated production enthusiasm and led to an increase in coke supply. Demand side, finished product prices rose slightly at the beginning of the week, improving steel mill profits, while daily average hot metal production increased, leading to higher rigid demand for coke and weakening steel mills' desire to bargain down prices. Overall, the coke supply-demand pattern gradually improved, coupled with costs stopping falling and stabilizing. This week, the coke market may operate steadily for the time being.

[SMM Coal and Coke Daily Briefing] In terms of supply, overall production levels at coke enterprises remained stable for the time being, with individual enterprises implementing slight production restrictions due to severe losses. Coke enterprises actively shipped goods, and coke transportation proceeded smoothly, while market sentiment showed signs of recovery. On the demand side, steel mill profits improved, and some mills completed maintenance and began to resume production. Daily average hot metal production gradually increased, creating rigid demand for coke. In summary, cost support lacked stability, demand performance was moderate, and there remained expectations for a fifth round of coke price declines. In the short term, the coke market is expected to operate in the doldrums.

[SMM Coal and Coke Daily Briefing] Supply side, the fourth round of coke price cuts has been implemented, with coking companies' losses widening and production enthusiasm declining, leading to a tightening of coke supply. Demand side, some steel mills' blast furnaces are expected to resume production after the holiday, increasing the rigid demand for coke. However, continuous price adjustments of terminal finished products and moderate coke inventory at steel mills are suppressing purchase willingness. Overall, market sentiment remains bearish, and the coke market is expected to remain in the doldrums after the holiday.