【SMM Daily Review on Coal and Coke】
Coking Coal Market:
The price of low-sulphur coking coal in Linfen is 1,300 yuan/mt, while in Tangshan it is 1,390 yuan/mt.
In terms of raw material supply, coal mines are operating normally, with supply remaining relatively ample, and some mines experiencing slight inventory buildup. On the demand side, coke prices are still expected to decline, downstream sentiment remains cautious, and purchasing is maintained at a prudent level. In summary, prices of some coal types have already dropped in advance to benefit coke enterprises, and the coking coal market is expected to operate stable with a weak trend in the short term.
Coke Market:
The nationwide average price of Grade I metallurgical coke (dry quenching) is 1,680 yuan/mt, while that of Quasi-Grade I metallurgical coke (dry quenching) is 1,540 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) is 1,340 yuan/mt, and that of Quasi-Grade I metallurgical coke (wet quenching) is 1,250 yuan/mt.
In terms of supply, affected by losses and environmental protection policies, some coke enterprises have expanded the scope and intensity of production cuts, with operating rates remaining moderate. On the demand side, some steel mills have resumed blast furnace operations, increasing their willingness to purchase coke. However, most steel mills maintain coke inventories at safe levels and continue purchasing as needed. In summary, the Two Sessions policies did not exceed market expectations, coupled with steel mills' desire to bargain down coke prices. The coke market is expected to operate stable with a weak trend in the short term, and the eleventh round of coke price cuts is still anticipated to materialize. 【SMM Steel】
