SMM Daily Brief on Coal and Coke Market
Coking Coal Market:
The quoted price of low-sulphur coking coal in Linfen was 1,300 yuan/mt. The quoted price of low-sulphur coking coal in Tangshan was 1,340 yuan/mt.
Fundamentally, coking coal production at mines remained stable, maintaining normal production pace. However, recent improvements in steel mill sales, gradual resumption of production, and reduced sentiment to suppress raw material prices have led to increased purchasing enthusiasm. Online auctions showed more gains than losses, and market transaction sentiment improved. In summary, market sentiment warmed up, and coking coal prices may remain stable this week.
Coke Market:
The nationwide average price of first-grade metallurgical coke - dry quenching was 1,625 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke - dry quenching was 1,485 yuan/mt. The nationwide average price of first-grade metallurgical coke - wet quenching was 1,290 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke - wet quenching was 1,200 yuan/mt.
Supply side, most coke enterprises still had profits. Based on profit strategies, coke supply remained relatively stable, and shipment conditions improved, with coke enterprise inventories continuing to decline. Demand side, recent declines in finished product inventories at steel mills and good profits led to continuous increases in pig iron production, creating rigid purchasing demand for coke and reducing control over arrivals. In summary, downstream rigid demand for coke increased, short-term supply-demand imbalance weakened, and the coke market may remain stable this week. [SMM Steel]
