Latest Update in the SMM Coal Market

[SMM Coking Coal and Coke Daily Briefing] In terms of supply, coke producers still face cost pressure, constraining their production enthusiasm. Currently, most coke producers maintain previous production restriction levels, while their shipment pace is relatively fast, keeping inventory low. On the demand side, steel mills are expected to see a slight reduction in hot metal output, but their purchasing enthusiasm for coke remains good. However, the steel products market is in the off-season, steel mill profitability is poor, and emission-reduction production cut policies in Tangshan have dealt a blow to rigid demand for coke. In summary, the short-term coke market is likely to be generally stable with a slight rise, and the ninth round of coke price increases is still expected to materialize.

[SMM Coking Coal and Coke Daily Brief] Supply side, coking coal prices stay high, coking by-product prices pull back, coking enterprises are under profit pressure and continue production restrictions. But recently, the uptrend in some coal prices has slowed down, and coking enterprises' profits have not been further squeezed, barely maintaining production, with coke supply temporarily stable. Demand side, futures declines combined with the plum rains in south China have led to a slight weakening of steel products, and steel mill profits have shrunk. However, blast furnace hot metal production stays high, raw material arrivals are insufficient, coke inventory continues destocking, and steel mills' procurement enthusiasm remains strong.

[SMM Coking Coal and Coke Daily Commentary] On the news front, leading coke enterprises initiated the ninth round of coke price increases, raising wet quenched coke by 50 yuan/mt and dry quenched coke by 55 yuan/mt, effective from 0:00 on June 26. In terms of supply, most coke producers remain loss-making, which suppresses their production willingness, and coke supply tightens. On the demand side, steel prices fluctuate downward and steel mill profit margins narrow. However, blast furnace hot metal output at mills stays high, daily coke consumption remains relatively robust, and coke purchasing enthusiasm is moderate. Overall, the short-term coke market is expected to hold up well, with expectations for the ninth round of price increases to be implemented.

[SMM Coking Coal and Coke Daily Briefing] Market news: rumors suggest that the ninth round of coke price increases is about to be proposed, requiring implementation on June 27 or 29. Supply side, after the eighth round of coke price increase was implemented, coke enterprises' losses narrowed somewhat, but the cost of coal charged into furnaces remained high, and most coke enterprises were not profitable, constraining their production. Demand side, steel mills' hot metal production remained at high levels, there is rigid demand for coke, and procurement remains active. In summary, coke fundamentals remain tight, and cost support is still expected to increase. In the short term, the coke market may hold up well, and there is a possibility that the ninth round of coke price increase will be implemented.

[SMM Daily Brief on Coking Coal and Coke] News: Mainstream steel mills in Hebei and Shandong have accepted the eighth round of coke price increases, with wet-quenched coke up by 50 yuan/mt and dry-quenched coke up by 55 yuan/mt, effective June 22. Supply side, the coking coal cost for coke enterprises continues to rise, widening their losses. Meanwhile, due to shortages of some coal types, some coke enterprises have been forced to cut production, leading to a contraction in coke output. Demand side, hot metal output at steel mills remains at highs, driving strong daily coke consumption. Their own coke inventories have declined. Against the backdrop of tight coke supply, steel mills' procurement demand for coke remains robust.

[SMM Coking Coal and Coke Daily Review] In news, some steel mills in certain regions have accepted the eighth round of coke price increases, with wet-quenched coke up by 50 yuan/mt and coke dry quenching up by 55 yuan/mt, effective June 22. Supply side, affected by the ongoing stringent safety inspections in Shanxi, coking coal supply remains tight, and the coking coal price increase has consistently outpaced the coke price increase; most coke producers are still incurring losses, and to reduce losses, these producers are voluntarily intensifying production restrictions, leading to a short-term decline in coke supply. Demand side, steel mill operating rates currently remain high, and due to the tight coke supply, their coke inventory replenishment has fallen short of expectations, leaving them with continued restocking demand for coke.

[SMM Coking Coal and Coke Daily Review] On the news front, leading coke enterprises have initiated the eighth round of coke price increase, to be implemented at midnight on June 20. Supply side, coke price increases hardly offset the rising raw material costs. Most coke enterprises are loss-making with low production willingness. Loss-making enterprises continue to impose production restrictions, leading to reduced coke output. Currently, coke enterprises are shipping smoothly, and their coke inventories remain persistently low. Demand side, steel mills' blast furnace operations are stable and utilization rates stay high. Their coke inventories are continuously destocking, and rigid demand support is ample.

[SMM Coking Coal and Coke Daily Briefing] News side, market rumors suggest that the eighth round of coke price increase will be proposed on the 17th and is expected to be implemented on the 20th. Supply side, after the seventh round of coke price increases, most coke producers remain in a loss-making state, with coal input costs rising even more significantly, suppressing coke production, and some coke enterprises continuing production restrictions. Demand side, currently, hot metal production of steel mill blast furnaces is running at high levels, daily coke consumption is relatively high, and steel mills' procurement enthusiasm for coke is moderate.