Latest Update in the SMM Coal Market

[SMM Daily Coal and Coke Brief] In terms of supply, after the first round of coke price cuts, coking coal prices also fell, improving coke plant profits. Operations remained at high levels, coke supply increased, downstream purchasing enthusiasm declined, and coke plants experienced passive inventory buildup. Demand side, steel mills currently have further production cuts and maintenance plans, intending to take this opportunity to pressure the raw material side and attempt a second round of coke price cuts. Therefore, steel mills slowed down their procurement pace for coke, mostly making just-in-time procurement. In summary, the coke market may continue in the doldrums in the short term, with expectations of a second round of price cuts.

[SMM Daily Coal and Coke Brief] Supply side, coke producers maintain good profitability and moderate production enthusiasm, with coke production stable to slightly increasing. However, some producers have seen minor output reductions due to environmental protection impacts, and with downstream steel mills slowing their procurement pace, sales resistance for coke producers is gradually emerging. Demand side, as steel mills had previously restocked significantly, most have replenished to reasonable levels, leading to a slowdown in coke procurement. Coupled with weak steel demand, more steel mills are undergoing maintenance shutdowns, reducing rigid demand for coke. Overall, the coke market may remain in the doldrums in the short term.

[Coal and Coke Daily Brief] Supply side, coke enterprises currently maintain moderate profits with no decline in production enthusiasm, keeping coke supply at high levels. However, market expectations are cooling, leading to sluggish shipments and increasing sales pressure for coke producers. Demand side, steel mill maintenance activities continue to rise, while sales pressure for finished products remains unchanged. Market pessimism persists, reducing buyers’ enthusiasm for coke procurement. Overall, the coke supply situation remains loose, and the coke market is expected to continue operating weakly.

[SMM Coal and Coke Daily Briefing] In terms of supply, after the coke price cut, coke producers still have profits, and production is stable with some increase. However, coke producers face shipment difficulties, and some have seen significant accumulation of coke inventory. On the demand side, the first round of coke price cuts has been implemented, and steel mill profits have slightly recovered. Yet, the finished steel market is in the traditional off-season with poor sales, and steel mills have intensified maintenance efforts, leading to a decline in daily average hot metal production. Additionally, recent coke inventory at steel mills has reached a reasonable level, causing a slowdown in procurement pace. Overall, end-use consumption of finished steel remains weak, and steel mills still have an intention to suppress coke prices. In the short term, the coke market may remain in the doldrums.

[SMM Coal and Coke Daily Briefing] In terms of news, the first round of coke price reduction has been implemented, with a decrease of 50-55 yuan/mt. Supply side, coke producers maintained moderate profits and high production enthusiasm, but downstream restocking activities decreased, leading to rising inventory pressure at coke plants. Demand side, recent increases in blast furnace maintenance at steel mills, coupled with no significant improvement in end-use demand for finished products, resulted in reduced purchasing enthusiasm for coke among steel mills and efforts to control arrivals. Overall, the supply-demand pattern is trending toward loosening, and the coke market is expected to remain in the doldrums in the short term.

[SMM Coal and Coke Daily Briefing] In terms of news, some steel mills initiated coke price cuts, effective from 00:00 on December 1. Supply side, coke enterprises are profitable, with operating rates continuously rising, leading to a further increase in coke supply. However, the pace of coke enterprise shipments has slowed down, and inventory has accumulated. Demand side, falling steel prices have led to a contraction in steel mill profits, and with recent coke inventory at steel mills at reasonable levels, restocking has slowed. Additionally, some steel mills have expanded maintenance plans, creating expectations of weakening coke demand, along with measures to control arrivals. Overall, the supply-demand structure for coke is trending towards loosening, market sentiment for a price decline is increasing, and coke prices are expected to face reductions next week.

[SMM Daily Coking Coal & Coke Briefing] Supply side, coke producers' profits improved, production enthusiasm was high, and sales pressure increased. Demand side, steel mills' hot metal production remained relatively stable, but steel mills' profitability was poor, blast furnace maintenance scope expanded, rigid demand for coke weakened, and some steel mills controlled arrivals. Overall, pressure for the first round of coke price reduction increased, and the coke market may operate generally stable with a slight fall in the short term.

[SMM Coal and Coke Daily Brief] Supply side, coke producers' profits have recovered, operating rates have risen, and coke supply is gradually increasing. However, shipments from coke producers are somewhat constrained, leading to a slight increase in coke inventory at some plants. Demand side, some steel mills are undergoing maintenance, and coupled with the finished steel market entering the off-season, demand for coke has seen a seasonal decline. Steel mills' coke inventory remains at normal levels, leading to a slowdown in the pace of coke procurement and weak restocking willingness. In summary, the coke market is in the doldrums in the short term, with most steel mills inclined to implement coke price cuts.

[SMM Daily Coking Coal and Coke Briefing] Supply side, coke producers' profits have improved, leading to strong production enthusiasm. Additionally, the impact of recent environmental protection-related controls in Hebei has diminished, with some coke enterprises increasing output, resulting in a rise in coke production. Demand side, steel mill profits are on the verge of losses, and the scope of blast furnace maintenance and production cuts has expanded, leading to a decline in hot metal output. Steel mills' demand for coke has decreased, with purchasing mainly as needed, and some mills have shown intentions to drive down coke prices. In summary, the coke market is expected to operate generally stable with a slight fall in the short term.

[SMM Daily Coke and Coal Briefing] In terms of supply, with coking coal costs declining, most coke plants remain profitable and maintain moderate production enthusiasm, leading to steady or slightly increased coke production. Demand side, finished steel destocking performance is weak, and steel mills are generally operating with low or negative margins, resulting in limited production motivation. After active replenishment, most steel mills have reached safe coke inventory levels and have shifted to purchasing as needed. Overall, the supply-demand structure of coke has shifted from tight to a weak balance, and the coke market is expected to remain stable in the short term.