SMM

SMM Daily Brief on Coal and Coke
Coking Coal Market:
The low-sulphur coking coal in Linfen was quoted at 1,330 yuan/mt. The low-sulphur coking coal in Tangshan was quoted at 1,370 yuan/mt.
Fundamentally, most mines maintained normal production. Recently, coking coal prices have adjusted, leading to cautious purchasing by downstream buyers, with purchases mainly made as needed. Mine shipments were moderate. Online auctions showed mixed performance in transaction results. The first round of coke price increases had limited boosting effect on coking coal prices. In summary, the coking coal market is expected to remain stable in the short term.
Coke Market:
The nationwide average price of first-grade metallurgical coke (dry quenching) was 1,680 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) was 1,540 yuan/mt. The nationwide average price of first-grade metallurgical coke (wet quenching) was 1,340 yuan/mt. The nationwide average price of quasi-first-grade metallurgical coke (wet quenching) was 1,250 yuan/mt.
In terms of supply, after the first round of coke price increases, the profitability of coke enterprises improved, and their production enthusiasm was moderate. Meanwhile, coke enterprises' shipments were smooth, and their coke inventory remained at low levels. On the demand side, pig iron production at steel mills fluctuated at highs, creating rigid demand for coke. However, coke inventory at steel mills was at reasonable levels, and they maintained purchasing as needed. In summary, coke has rigid demand support, but with finished product prices continuing to decline over the weekend, the resistance to further coke price increases has intensified. The coke market is expected to be generally stable with a slight rise in the short term, and the difficulty of implementing the second round of price increases has increased. [SMM Steel]