【SMM Daily Review on Coal and Coke】
Coking Coal Market:
Low-sulfur primary coking coal in Linfen is quoted at 1,400 yuan/mt. Low-sulfur primary coking coal in Tangshan is quoted at 1,450 yuan/mt.
In terms of fundamentals, coal mines are gradually resuming production, and supply is steadily recovering. However, the market sentiment remains cautious, with major participants holding a weak outlook for the future. Purchasing enthusiasm is moderate, and downstream players primarily consume their own inventory. In summary, the coking coal market may fluctuate downward in the short term.
Coke Market:
The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,790 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (dry quenching) is 1,650 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,440 yuan/mt. The nationwide average price of Quasi-Grade I metallurgical coke (wet quenching) is 1,358 yuan/mt.
In terms of supply, coal mines are offering discounts, and coke enterprises' profits have returned to the break-even point. Coke enterprises maintain normal production, but overall inventory pressure remains significant, leading to active shipments. On the demand side, most steel mills maintain reasonable coke inventory levels, while finished steel sales are average. Steel mills' rigid demand for coke has weakened, and they primarily purchase as needed. In summary, the fundamentals of the coke market remain relatively loose, with weak rigid demand. Coupled with the expectation of reduced cost-side support, coke prices still face the risk of decline. The coke market is expected to fluctuate downward in the short term. 【SMM Steel】
