[SMM coal and coke daily briefing] 20250620

[SMM Daily Briefing on Coking Coal and Coke]

Coking Coal Market:

In Linfen, the quoted price for low-sulphur coking coal is 1,180 yuan/mt. In Tangshan, the quoted price for low-sulphur coking coal is 1,200 yuan/mt.

In terms of the raw material fundamentals, coal mines have been focusing on safe production recently due to the impact of environmental protection and safety inspections, resulting in a slight decline in production. However, the market trading atmosphere remains sluggish. Downstream coking and steel enterprises maintain a cautious approach to procurement, leading to poor sales of coal mines and a continuous accumulation of coking coal inventory. The coking coal market is expected to be in the doldrums next week, and there is still an expectation of price reductions for some blended coal varieties.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,495 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,355 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,170 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,080 yuan/mt.

In terms of supply, due to environmental protection factors, the operating rates of coking enterprises have declined. However, the purchase willingness of downstream buyers remains low, and the coke inventory of most coking enterprises continues to accumulate. In terms of demand, the coke inventory of steel mills is generally at a medium to high level, and the market is in the traditional off-season, resulting in weak procurement enthusiasm from steel mills. In summary, the overall supply-demand pattern for coke is loose. Some steel mills in Hebei and Tianjin have already initiated the fourth round of price reductions for coke. The coke market is expected to be in the doldrums next week. [SMM Steel]