[SMM Coal and Coke Daily Review] Some Steel Mills Have Already Proposed the Sixth Round of Price Cuts

Published: Jan 6, 2025 17:22

Save

[SMM Coal and Coke Daily Review: Some Steel Mills Have Proposed the Sixth Round of Price Cuts] In terms of supply, coke producers have temporarily maintained stable production, and there has been no significant decline in shipments. Only a few coke producers have reduced production due to environmental protection factors. On the demand side, finished steel prices are declining, coupled with weaker production enthusiasm from steel mills at year-end. This negative market feedback is being transmitted to the raw material side, with steel mills gradually seeking profit margins from coke producers and coal mines. In summary, demand remains moderate, and cost support has weakened, leading to continued downside risks for coke prices. Some steel mills have even proposed the sixth round of coke price cuts.

On January 6, SMM Coal and Coke News,

Coking Coal Market:

Low-sulfur primary coking coal in Linfen was quoted at 1,450 yuan/mt, while in Tangshan it was quoted at 1,500 yuan/mt.

Regarding fundamentals, the completion of annual tasks at coal mines and the impact of individual mine accidents led to production halts at some mines in Shanxi, reducing supply. However, coking coal inventory at mines remained at high levels, keeping supply relatively ample. Additionally, some coke plants in Shandong halted production due to capacity quota issues, weakening demand support. In summary, the coking coal market may fluctuate downward, with room for further price reductions for certain coal types.

Coke Market:

The nationwide average price of Grade I metallurgical coke (dry quenching) was 1,955 yuan/mt, while quasi-Grade I metallurgical coke (dry quenching) averaged 1,815 yuan/mt. The nationwide average price of Grade I metallurgical coke (wet quenching) was 1,590 yuan/mt, and quasi-Grade I metallurgical coke (wet quenching) averaged 1,508 yuan/mt.

In terms of supply, coke production remained temporarily stable, and shipment levels did not show significant declines, with only some coke plants reducing production due to environmental protection factors. On the demand side, falling finished steel prices, combined with weaker production enthusiasm at steel mills near year-end, created negative feedback to the raw material side. Steel mills gradually sought profit margins from coke plants and coal mines. In summary, with moderate demand and weakened cost support, coke prices still face downward risks, and some steel mills have even proposed a sixth round of price cuts.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 6, 2026 18:30

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

Feb 6, 2026 18:30

Feb 6, 2026 18:09

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day.

Feb 6, 2026 18:09

Feb 6, 2026 17:41

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

Feb 6, 2026 17:41