【SMM Daily Review on Coal and Coke】
Coking Coal Market:
The price of low-sulphur coking coal in Linfen was 1,300 yuan/mt, while in Tangshan it was 1,390 yuan/mt.
In terms of fundamentals, coal mines maintained normal operations, and coking coal supply remained stable. However, inventories of coking coal at downstream coke and steel enterprises declined. Coupled with the emergence of cost-effectiveness in certain coal types, downstream coke plants and steel mills began moderate purchasing, leading to improved sales at coal mines. Online auctions showed mixed performance. In summary, coal mine sales improved, market pessimism eased, and coking coal prices are expected to remain stable in the short term.
Coke Market:
The nationwide average price of Grade I metallurgical coke (dry quenching) was 1,625 yuan/mt, while that of Quasi-Grade I metallurgical coke (dry quenching) was 1,485 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) was 1,290 yuan/mt, and that of Quasi-Grade I metallurgical coke (wet quenching) was 1,200 yuan/mt.
In terms of supply, after the eleventh round of price cuts for coke, profits at coke plants declined, with some plants incurring losses. As a result, these plants reduced production, leading to a slight contraction in coke supply. On the demand side, recent increases in pig iron production at steel mills drove up daily coke consumption. Some steel mills restocked coke to manage inventory levels, while certain traders made moderate purchases. Overall, coke sales were moderate. In summary, coke inventories at coke plants declined, the fundamentals of the coke market improved, and cost support remained firm. The coke market is expected to remain stable this week. 【SMM Steel】
