[SMM Daily Coking Coal and Coke Briefing]
Coking coal market:
Low-sulphur coking coal in Linfen is offered at 1,470 yuan/mt. Low-sulphur coking coal in Tangshan is offered at 1,450 yuan/mt.
In terms of raw material fundamentals, online auctions show mixed performance, with some coal types failing to sell. However, recent frequent mine accidents, coupled with slow production resumptions at previously idled mines, make it difficult for coking coal supply to see significant growth. Mines show strong reluctance to budge on prices, and coking coal prices are expected to remain stable in the short term.
Coke market:
The nationwide average price for first-grade metallurgical coke - dry quenching is 1,845 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching is 1,705 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching is 1,490 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching is 1,400 yuan/mt.
Supply side, coke producers' profits have improved significantly, leading to high production enthusiasm. However, with military parade preparations approaching, many provinces are implementing environmental protection-driven production restrictions on coke producers, resulting in an overall decline in operating rates. Demand side, steel mills near Beijing-Tianjin-Hebei are concentrating production restrictions around month-end, leading to an expected short-term decline in rigid coke demand. Coupled with falling futures dragging down spot prices, steel mills' purchasing enthusiasm has decreased, and they have returned to purchasing as needed. In summary, the tight fundamentals of coke have improved somewhat, and the coke market is expected to remain stable in the short term, with significant room for negotiation on the eighth round of coke price increases.[SMM Steel]
