[SMM Daily Review on Coking Coal and Coke]
Coking coal market:
Linfen low-sulphur coking coal was quoted at 2,350 yuan/mt.
In terms of coking coal, prices are currently under dual pressure from weak fundamentals and weak expectations, and are expected to consolidate on a subdued note in the short term. On the supply side, slow production resumptions and low inventory are underpinning prices, but with supply assurance efforts continuing and expectations for production resumptions strengthening, auction failures are frequent and the market is bearish. On the demand side, negative feedback is intensifying, with steel mills cutting production due to losses, coke price cuts being implemented, and coke producers pushing for lower prices, weakening coking coal demand.
Coke market:
The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) was 2,310 yuan/mt.
In terms of news, mainstream steel mills in Hebei and Shandong officially confirmed the first round of coke purchase price cuts, with wet quenching coke reduced by 100 yuan/mt and dry quenching coke reduced by 110 yuan/mt, effective from 00:00 on October 1. In terms of supply, improved margins drove independent coke producers to raise production, with daily average coke production continuing to climb, but the shortage of premium coking coal limited capacity release. Although production has rebounded from low levels, it remains below the same period in previous years. Most coke producers maintained zero or low inventory and actively destocked, with relatively low inventory providing some support to spot prices. In terms of demand, the September peak season fell short of expectations, but hot metal production at steel mills remained at a relatively high level, creating rigid consumption of coke. However, steel mills were generally loss-making and resisted high-priced raw materials, purchasing cautiously. Coke inventory remained at a medium level, and expectations for production cuts at steel mills were heating up, with some already scheduling maintenance and purchasing as needed while controlling arrivals. Overall, after the holiday, coke supply will continue to recover, and with increased maintenance at steel mills and easing raw material costs, coke still faces downward pressure, with the market expected to remain in the doldrums in the short term. [SMM Steel]
![[Most downstream construction sites stalled during the holiday, leading to a phased buildup in social inventory]](https://imgqn.smm.cn/usercenter/JdqON20251217171718.png)
