[SMM Coking Coal and Coke Daily Brief] 20260922

[SMM Daily Review of Coking Coal and Coke]

Coking coal market:

Linfen low-sulphur coking coal was quoted at 2,510 yuan/mt.

On the coking coal front, domestic mine production resumptions fell short of expectations. However, driven by policies to stabilise production and ensure supply, supply growth expectations exist, and market sentiment has cooled notably. Failed auctions for some coal types in online sales increased. In the short term, coking coal prices are likely to consolidate on a subdued note, and the inflection point for price declines has already emerged.

Coke market:

The nationwide average price of quasi-first-grade metallurgical coke (dry-quenched) was 2,420 yuan/mt.

In terms of supply, some coke producers remained at slight losses, and tight raw material coal supply made it difficult for coke producers to significantly improve operating rates. Sales were moderate, and coke inventories at coke producers remained at low levels. On the demand side, daily average hot metal production at steel mills stayed at a relatively high level, providing rigid support for coke. However, downstream steel demand was generally sluggish, and steel mill profits were under pressure, creating negative feedback constraints on coke prices. Overall, before the holiday, downstream steel mills still had phased restocking demand, which supported coke prices. But negative feedback pressure will be transmitted upstream, with bullish and bearish factors intertwined. In the short term, the coke market is likely to consolidate on a subdued note, and the first round of coke price cuts may be proposed before the National Day holiday. [SMM Steel]