[SMM Daily Coking Coal and Coke Market Review]
Coking coal market:
Low-sulphur coking coal in Linfen was quoted at 1,450 yuan/mt, while in Tangshan at 1,300 yuan/mt.
Raw material fundamentals, torrential rains caused unstable mine production, with coking coal supply recovering slowly. However, recent market sentiment cooled slightly as downstream buyers' purchase willingness for high-priced resources declined, and the online auction failure rate increased. Short-term upward momentum for coking coal appears limited.
Coke market:
The nationwide average price of first-grade metallurgical coke (dry-quenched) stood at 1,660 yuan/mt, while quasi-first-grade (dry-quenched) at 1,520 yuan/mt. First-grade metallurgical coke (wet-quenched) averaged 1,320 yuan/mt, and quasi-first-grade (wet-quenched) at 1,230 yuan/mt.
Supply side, after four consecutive rounds of increases, coke producers' losses improved, but rising coking coal prices still constrain production expansion. Demand side, steel mill profits remain relatively high, with hot metal production sustaining elevated levels. Coupled with generally moderate coke arrivals at mills, procurement enthusiasm persists. Overall, coke supply remains tight, and the market is expected to hold up well in the short term, with potential for a fifth round of price hikes.[SMM Steel]
