[SMM Coking Coal and Coke Daily Brief] 20261010

[SMM Daily Review on Coking Coal and Coke]

Coking coal market:

Linfen low-sulphur coking coal was quoted at 2,250 yuan/mt.

In coking coal, the current supply recovery is limited while demand is weakening, and spot prices are expected to consolidate on a subdued note in the short term. Affected by coke price cuts, demand has contracted passively, and combined with pressure from expectations of production resumptions on the supply side, the spot price center will continue to shift downward. Some previously high-priced coal types still face downward pressure in online auctions, and coking coal prices are expected to remain subdued in the short term.

Coke market:

The nationwide average price of quasi-first-grade metallurgical coke (dry-quenched) stood at 2,310 yuan/mt.

On the supply side, coking coal costs have pulled back, coke enterprises have largely moved out of losses, and production enthusiasm is moderate. Logistics disruptions during the holiday led to a slight increase in inventory at some coke enterprises, weakening their ability to hold prices firm, and most coke enterprises are actively managing inventory levels. On the demand side, steel mills are suffering severe losses and are eager for raw material prices to fall. They have already issued notices to cut coke prices. Moreover, with steel inventory piling up after the holiday, some steel mills have stepped up maintenance efforts, reducing rigid demand for coke. Only a small amount of restocking for rigid demand is taking place, with no large-scale stockpiling. Overall, coke supply has edged up but with limited elasticity, while demand continues to contract. The decline in coking coal prices is weakening cost support for coke. Under multiple pressures including weakening costs and falling demand, the second round of coke price cuts is expected to be implemented quickly next week. [SMM Steel]