[SMM Daily Coke & Coal Briefing] 20250702

[SMM Daily Commentary on Coal & Coke]

Coking Coal Market:

Linfen's low-sulphur coking coal is quoted at 1,180 yuan/mt. Tangshan's low-sulphur coking coal is also quoted at 1,180 yuan/mt.

In terms of raw material fundamentals, environmental protection checks continue, but some accident-affected mines have entered production resumption phase with output recovery. Correspondingly, downstream purchase enthusiasm has increased, trading activities have resumed, and mine coking coal inventories have declined. In summary, coking plant prices have stabilized in the short term with rebound expectations.

Coke Market:

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

In terms of supply, most coking plants remain unprofitable, but production has stabilized recently excluding previous cuts. Coke supply shows no further decline, while coke shipments remain moderate with continued inventory destocking at coking plants. On the demand side, SMM pig iron output decreased by 4,200 mt this week under production control policies, though still maintaining high levels with rigid coke demand. Some low-inventory steel mills continue restocking activities. In summary, coke market fundamentals show limited contradictions with solid cost support, suggesting temporary stability in the short term. [SMM Steel]