Latest Update in the SMM Coal Market

[SMM Coking Coal and Coke Daily Brief] In terms of supply, coke producers' per-mt profit has recovered, production enthusiasm was moderate, shipments were relatively smooth, and in-plant coke inventory remained at low levels. Demand side, steel mills maintained strong production enthusiasm, hot metal production edged up, providing solid rigid demand support for coke. Additionally, with the Labour Day holiday approaching, some steel mills released pre-holiday restocking demand. In summary, the coke supply-demand structure remained tight, and the coke market may be generally stable with slight rise in the short term.

[SMM Coking Coal and Coke Daily Brief] News: The second round of coke price increase was officially implemented, with procurement prices raised by 50-55 yuan/mt, effective from midnight on April 20. In terms of supply, coke producers maintained moderate per-mt profitability, production remained normal, shipments were smooth, and in-factory inventory largely stayed at low levels. Demand side, steel mills maintained high and stable operating rates, in-factory coke inventory continued to pull back, and demand for coke remained solid. However, steel mill profits did not see significant recovery, and steel mills still showed resistance sentiment toward further coke price increases. Overall, the second round of coke price increase has been implemented, but the market is in a digestion phase. A third round of increase is unlikely to materialize in the short term, and the coke market may hold up well and remain generally stable with slight rise going forward.

[SMM Coking Coal and Coke Daily Brief] Supply side, coking enterprises in Shanxi, Hebei, and other regions saw tightened production due to the concentrated push by local governments for ultra-low emission retrofits. However, production in other regions rose instead of declining, keeping overall coke supply stable with a slight increase. Demand side, steel mill hot metal production continued to increase, driving strong rigid demand for coke. Steel mills with low inventory had a strong willingness to restock, while other steel mills purchased as needed with stable rigid demand. Overall, coke supply and demand remained in a tight balance. The second round of coke price increases is expected to materialize, and the coke market may hold up well next week.

[SMM Coking Coal and Coke Daily Brief] Supply side, coking enterprises saw moderate shipments, coke inventory remained at low levels, and most coking enterprises maintained normal production levels, keeping coke supply relatively stable. Demand side, downstream steel mills operated at a good pace, daily average hot metal production increased, and some steel mills with low inventory showed relatively strong willingness to restock coke. In summary, the coke supply-demand pattern was basically balanced, but cost declines were limited. The second round of coke price increase is still expected to materialize, and the short-term coke market is expected to hold up as generally stable with slight rise.

[SMM Coking Coal and Coke Daily Brief] Supply side, market sentiment improved recently, and coke enterprises actively increased shipments, leading to a continued decline in coke enterprise coke inventory. Demand side, steel mills currently maintained high production enthusiasm, with daily average hot metal production continuing to increase, sustaining rigid demand for coke. However, steel mill profits were moderate recently, leading to poor acceptance of coke price hikes. Most steel mills purchased coke as needed, lacking willingness to restock. In summary, coke and steel enterprises will continue to negotiate, and the coke market may remain stable in the short term.

[SMM Coking Coal and Coke Daily Brief] In terms of supply, coking costs declined somewhat, coke enterprise profits saw some recovery, production remained relatively stable, and downstream demand for coke was strong, with coke inventory at coke enterprises staying at low levels. Demand side, steel mill hot metal production increased slightly, demand for coke was strong, and some steel mills had relatively low coke inventory levels, with urgent procurement requests for coke. In summary, coke fundamentals were in a tight balance, the short-term coke market was expected to hold up well and remain generally stable with slight rise, and regarding the second round of coke price increase, coke and steel enterprises were still in a standoff.

[SMM Coking Coal and Coke Daily Brief] Supply side, coke producers had relatively small losses and moderate production enthusiasm, with coke supply remaining at high levels. Coupled with strong downstream demand, coke producers' coke inventory stayed at low levels. Demand side, steel mills' daily average hot metal production edged up, strengthening rigid demand for coke, and most steel mills currently showed moderate purchasing enthusiasm. In summary, coke fundamentals exhibited a tight balance, but cost support is expected to weaken, and the short-term coke market is likely to hold up well with a generally stable with slight rise trend.