[SMM Daily Briefing on Coke & Coal] 20250624

[SMM Daily Commentary 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 also 1,180 yuan/mt.

In terms of the raw material fundamentals, environmental protection and safety inspections have been strictly enforced recently. Additionally, some mines have high inventory levels, leading to voluntary production cuts and a slight decrease in coal mine production. Meanwhile, the finished steel market is in the traditional off-season, and downstream coking and steel enterprises are cautious in their purchases, procuring as needed. In summary, market sentiment in the coking coal market has improved somewhat, with downstream coking and steel enterprises showing increased willingness to restock at lower prices. In the short term, coking coal prices are expected to stabilize in stages.

Coke Market:

The nationwide average price for first-grade metallurgical coke (dry quenching) is 1,440 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (dry quenching) is 1,300 yuan/mt. The nationwide average price for first-grade metallurgical coke (wet quenching) is 1,120 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke (wet quenching) is 1,030 yuan/mt.

In terms of supply, most coking enterprises are already operating at a loss, with production enthusiasm dampened, leading to a contraction in coke supply. However, shipments remain basically normal, and inventory has not accumulated significantly. On the demand side, the steel market is gradually weakening, with steel mills showing low purchase willingness. Moreover, the Tangshan region has received emission reduction notices, requiring some steel mills to implement production cuts during specified periods, further suppressing coke demand. Steel mills are primarily purchasing coke as needed. In summary, the coke market exhibits a pattern of weak supply and demand, and in the short term, the coke market will operate in the doldrums.