【SMM Daily Review on Coal and Coke】
Coking Coal Market:
The price of low-sulfur primary coking coal in Linfen is 1,400 yuan/mt, while in Tangshan it is 1,500 yuan/mt.
In terms of fundamentals, coal mines are gradually resuming production. Private coal mines are undergoing maintenance and training, leading to slow recovery, while state-owned coal mines have started coal output, resulting in an increase in daily coking coal supply. The online auction pass rate remains high, and the new transaction prices are still lower than the most recent pre-holiday auction. Additionally, coke prices still face a risk of decline in the near term, which is bearish for coking coal prices. In summary, coking coal prices are expected to fluctuate downward next week.
Coke Market:
The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,845 yuan/mt, while that of Quasi-Grade I metallurgical coke (dry quenching) is 1,705 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,490 yuan/mt, and that of Quasi-Grade I metallurgical coke (wet quenching) is 1,408 yuan/mt.
In terms of supply, coke enterprises maintain stable operations, with overall supply remaining ample. However, profit margins are limited, and some coke enterprises are even experiencing losses. On the demand side, some steel mills still have maintenance plans after the holiday, coupled with their coke inventory fluctuating at high levels, leading to a persistent desire to bargain down prices. In summary, market sentiment is predominantly bearish, and coke prices are expected to decline next week. 【SMM Steel】
