SMM

[SMM Daily Coking Coal and Coke Review]
Coking Coal Market:
The offer price for low-sulphur coking coal in Linfen is 1,710 yuan/mt. The offer price for low-sulphur coking coal in Tangshan is 1,620 yuan/mt.
Raw material fundamentals: Environmental protection inspections continue to impact production, restricting coking coal output. Downstream restocking pace has slowed recently, with cautious purchasing of high-priced coal varieties, leading to a cooling of market bullish sentiment. However, mine coking coal inventory is low, and with pre-sold orders, offers remain relatively firm. Short-term coking coal prices are expected to hold generally stable with a slight rise.
Coke Market:
The nationwide average price for first-grade metallurgical coke - dry quench is 1,900 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quench is 1,760 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quench is 1,540 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quench is 1,450 yuan/mt.
Supply side, most coke plants report smooth shipments, with coke inventory generally maintained at low levels. However, some coke plants face shrinking profits, leading to increased maintenance efforts and a reduction in coke supply. Demand side, the steel market has entered the off-season; steel mill profits continue to decline, with some mills already incurring losses. Coupled with finished steel destocking falling short of expectations, maintenance and production restrictions at steel mills have increased, impacting rigid demand for coke. In summary, the supply-demand imbalance for coke has eased somewhat; the coke market remains in a stalemate, and there are still expectations for the implementation of the fourth round of coke price increases.[SMM Steel]