[SMM Coking Coal and Coke Daily Brief] 20260807

[SMM Coking Coal and Coke Daily Briefing]

Coking coal market:

Linfen low-sulphur coking coal was quoted at 2,000 yuan/mt.

For coking coal, constrained by safety inspections, safety requirements, prior overproduction checks and other factors, most operating mines maintained low utilization rates, coking coal supply was limited. Online auction sentiment clearly stabilized, the failed bid ratio remained low, and market sentiment recovered. However, affected by steel mill losses, coke producer production restrictions and other factors, coking coal prices are unlikely to rise in the short term, and may continue to remain stable for the time being.

Coke market:

The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) was 1,980 yuan/mt.

On the news front, mainstream steel mills lowered their coke purchase prices: wet quenching down 50 yuan/mt, dry quenching down 55 yuan/mt, effective from 0:00 on August 7, 2026. On the supply side, most independent coke producers fell into losses, costs were relatively rigid, coke supply contracted, and coke producers’ shipments were blocked, leading to a continuous build-up of coke inventory. On the demand side, the steel market remained in the traditional off-season, compounded by high temperatures and rainy weather, which widened the scope of blast furnace maintenance at steel mills, significantly weakening rigid demand for coke. In summary, the coke market is likely to remain in the doldrums in the short term, but there is a possibility of a delayed price cut. [SMM Steel]