SMM

[SMM Daily Coking Coal and Coke Review]
Coking Coal Market:
The offer price for low-sulphur coking coal in Linfen is 1,610 yuan/mt. The offer price for low-sulphur coking coal in Tangshan is 1,620 yuan/mt.
Fundamentals for the raw material: with coal mines strictly controlling overproduction and rigorous safety and environmental protection inspections across various regions, coking coal supply remains tight. Additionally, downstream buyers are actively restocking, leaving coal mines in a destocking state. Market sentiment is positive, and the coking coal market is expected to hold up well next week.
Coke Market:
The nationwide average price for first-grade metallurgical coke - dry quenching is 1,900 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching is 1,760 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching is 1,540 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching is 1,450 yuan/mt.
On the news front, mainstream coke producers have initiated a fourth round of coke price increases, with the hike ranging from 50-55 yuan/mt, effective from 00:00 on November 10. Supply side, as mainstream steel mills have accepted the third round of coke price increases, coke producers' profits have improved. However, coking coal prices are still expected to strengthen. Facing cost pressure, most coke producers are maintaining the previous production restrictions, making it difficult to quickly improve the tight supply situation. Demand side, performance in the steel end-use market is weak, leading to increased blast furnace maintenance and production restrictions at steel mills. The rigid demand for coke has pulled back slightly, but the downside room for daily average hot metal output at steel mills is limited. Furthermore, coke inventory at some steel mills has declined slightly, prompting a focus on restocking in the short term, which continues to support coke demand. In summary, the coke market is expected to continue holding up well next week. [SMM Steel]