[SMM Daily Coke & Coal Briefing] 20250703

Published: Jul 3, 2025 17:22

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[SMM Daily Briefing on Coal and Coke] In terms of supply, most coke enterprises are experiencing minor losses, but the impact on production is relatively small. Coke supply remains relatively stable, and the shipment situation of coke enterprises is moderate, with their own coke inventory continuing to decline. Demand side, pig iron production at steel mills remains high, creating a rigid demand for coke. Some steel mills with low inventory are still engaging in restocking. In summary, the fundamental contradictions in the coke market are not obvious, and cost support is solid. The short-term coke market may operate temporarily in a stable manner. However, due to the continuous and significant rally in the futures market, a rebound may occur subsequently.

[SMM Coking Coal & Coke Daily Briefing]

Coking Coal Market:

Linfen low-sulphur coking coal is quoted at 1,180 yuan/mt. Tangshan low-sulphur coking coal is quoted at 1,200 yuan/mt.

In terms of raw material fundamentals, coal mines have generally maintained normal production rhythms with coking coal supply recovering. Meanwhile, downstream purchasing enthusiasm has increased, and trading activities have resumed. Online auction performance continued to improve, with Tangshan's premium coal grades rebounding slightly by 10-20 yuan/mt. However, the price suppression effect from coke plant losses still needs consideration. In summary, coking coal prices are expected to stabilize temporarily with limited rebound potential for premium coal grades.

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, and the quasi-premium counterpart is 1,030 yuan/mt.

In terms of supply, most coke plants are operating with marginal losses but maintaining stable production. Coke shipments remain moderate, and inventories at coke plants continue to decline. On the demand side, steel mills' pig iron production remains at high levels, creating rigid demand for coke. Some low-inventory steel mills continue restocking activities. Overall, fundamental contradictions in the coke market are insignificant with solid cost support. The coke market may stabilize temporarily, but a potential rebound could emerge due to sustained sharp gains in futures markets.

[SMM Steel]

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