[SMM Daily Coking Coal and Coke Market Review]
Coking coal market:
The low-sulphur coking coal in Linfen was quoted at 1,320 yuan/mt, while that in Tangshan was quoted at 1,230 yuan/mt.
Fundamentally, mines maintained stable production, and coking coal supply recovered. The first round of coke price increases has been implemented, boosting market sentiment for coking coal. Mines reported smooth shipments with relatively small inventory pressure. Online auction prices remained stable or rose slightly. Downstream restocking demand persisted, and the coking coal market is expected to hold up well in the short term.
Coke market:
The nationwide average price of first-grade metallurgical coke (dry-quenched) stood at 1,495 yuan/mt, while that of quasi-first-grade (dry-quenched) was 1,355 yuan/mt. The nationwide average price of first-grade metallurgical coke (wet-quenched) was 1,170 yuan/mt, and quasi-first-grade (wet-quenched) was 1,080 yuan/mt.
Supply side, the first round of coke price hikes took effect, but some coking plants remained loss-making and maintained production restrictions. Demand side, hot metal output at steel mills increased, expanding rigid coke demand. Additionally, the world's largest hydropower project commenced construction on July 19 on the Yarlung Zangbo River in Tibet, which will boost future steel demand and further reduce mills' willingness to cut production, leading to active coke procurement. In summary, major coking plants have initiated the second round of price increases by 50-55 yuan/mt, expected to take effect on July 22. The coke market is likely to hold up well in the short term, with a high probability of implementation. [SMM Steel]
