[SMM Coking Coal and Coke Daily Brief] 20260806

[SMM Coking Coal & Coke Daily Brief]

Coking Coal Market:

The quotation for low-sulphur coking coal in Linfen is 2,000 yuan/mt.

On coking coal, coal mine production resumptions in China remain constrained by safety supervision and approval procedures, limiting supply growth of coking coal. Currently, most coal mines maintain inventory at medium-low levels and face no obvious shipment pressure, supporting coking coal prices. However, market sentiment stays cautious, with low acceptance of high-priced resources. In the short term, the coking coal market is likely to be in the doldrums.

Coke Market:

The nationwide average price for quasi-first-grade metallurgical coke – dry quenching stands at 1,980 yuan/mt.

Supply side, the high-pressure safety supervision stance in Shanxi’s main production areas remains unchanged. Some coking coal prices have edged up, leading to high cost pressure for coke producers. Most coke producers are in losses, and the intensity of voluntary production cuts has strengthened, reducing coke supply. However, some coke producers are also facing shipment obstacles, resulting in inventory buildup. Demand side, end-user demand for finished steel products is weak. Steel mill hot metal production has continuously pulled back, shrinking rigid demand for coke. Additionally, steel mills’ profitability is poor, keeping their coke procurement strategy cautious. Overall, the market’s negative feedback loop remains in place. In the short term, the spot coke market is expected to be in the doldrums, and the third round of price cuts is expected to land. [SMM Steel]