SMM

【SMM Daily Review on Coal and Coke】
Coking Coal Market:
Linfen low-sulphur coking coal is quoted at 1,320 yuan/mt. Tangshan low-sulphur coking coal is quoted at 1,390 yuan/mt.
In terms of raw material fundamentals, coking coal supply remains sufficient, and coal mines still face significant sales pressure. However, after a prolonged and continuous price decline, the downside room for coking coal is limited, and price reductions are slow. Even though downstream acceptance of current coking coal prices is relatively low, it is unlikely for coking coal prices to experience another sharp decline. In summary, market sentiment remains cautious, and coking coal is expected to operate steadily with a weak trend.
Coke Market:
The nationwide average price for Grade I metallurgical coke (dry quenching) is 1,680 yuan/mt. The nationwide average price for Quasi-Grade I metallurgical coke (dry quenching) is 1,540 yuan/mt. The nationwide average price for Grade I metallurgical coke (wet quenching) is 1,340 yuan/mt. The nationwide average price for Quasi-Grade I metallurgical coke (wet quenching) is 1,250 yuan/mt.
In terms of supply, after the tenth round of coke price cuts, most coke enterprises have fallen into losses, with limited room for further cost reductions. Profit recovery for coke enterprises remains challenging, and some have reduced production, leading to a decline in coke supply. On the demand side, end-use demand is moderate, and steel mills' pig iron production is gradually decreasing, reducing daily coke consumption. Additionally, steel mills' coke inventories are at reasonable levels, and they mainly purchase as needed. In summary, coke supply has started to tighten, and cost support is stabilizing. Coupled with positive market expectations for policies from the Two Sessions, the coke market is expected to operate steadily for now. 【SMM Steel】