[SMM coal and coke daily brief review] 20250520

Published: May 20, 2025 17:10

Save

[SMM Daily Commentary on Coking Coal and Coke] In terms of supply, most coking enterprises still maintain certain profits and operate steadily. However, the wait-and-see sentiment among downstream buyers has increased, hindering the shipment of coke for some coking enterprises, leading to a slight accumulation of coke inventory. In terms of demand, pig iron production at steel mills has peaked and is pulling back. There is a general expectation of weaker demand for finished steel products in the future. Additionally, most steel mills currently have coke inventory at medium to high levels, leading them to be cautious in purchasing raw materials and strengthening their desire to bargain down prices. Furthermore, today, both deposit and lending interest rates were lowered, but this failed to offset the market's bearish sentiment, resulting in an overall downward trend in the coking coal and coke futures market. In summary, the supply-demand imbalance in the coke market continues to accumulate, and cost support is weakening. There is an expectation of a second round of price reductions in the short-term coke market.

[SMM Daily Briefing on Coking Coal and Coke]
Coking Coal Market:
In Linfen, the quoted price for low-sulphur coking coal is 1,250 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,330 yuan/mt.
In terms of fundamentals, coal mines are operating normally with no significant reduction in supply. However, downstream buyers are adopting a wait-and-see attitude, maintaining just-in-time procurement. As a result, coal mines are receiving fewer new orders, and the number of failed online auctions has increased slightly. Market sentiment has deteriorated, and the coking coal market is expected to be in the doldrums in the short term.
Coke Market:
The nationwide average price for premium metallurgical coke (dry quenching) is 1,625 yuan/mt. The nationwide average price for quasi-premium metallurgical coke (dry quenching) is 1,485 yuan/mt. The nationwide average price for premium metallurgical coke (wet quenching) is 1,290 yuan/mt. The nationwide average price for quasi-premium metallurgical coke (wet quenching) is 1,200 yuan/mt.
In terms of supply, most coking enterprises are still maintaining certain profits and operating steadily. However, downstream buyers are increasingly adopting a wait-and-see attitude, hindering the shipment of coke for some enterprises, leading to a slight accumulation of coke inventory. On the demand side, pig iron production at steel mills has peaked and is pulling back. There is a general expectation of weaker demand for finished steel products in the future. Additionally, most steel mills currently have medium to high levels of coke inventory and are cautious about purchasing raw materials, with an increased desire to bargain down prices. Furthermore, today's deposit and loan interest rates have both been lowered, but this has failed to offset the market's bearish sentiment, with coking coal and coke futures prices generally declining. In summary, the supply-demand imbalance in the coke market continues to accumulate, and cost support is weakening. There is an expectation of a second round of price reductions in the short-term coke market. [SMM Steel]

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