[SMM Daily Coke & Coal Brief Review] 20250704

[SMM Daily Commentary on Coking Coal and Coke]

Coking Coal Market:

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

In terms of raw material fundamentals, safety inspection pressures remain severe, with production suspensions at some mines in certain regions. Recent coking coal market transactions have improved, online bidding has turned more active, and mine inventories have slightly declined, easing sales pressures. Sellers show strong reluctance to budge on prices. Short-term coking coal prices are expected to stabilize temporarily, with partial price adjustments upward for oversold coal varieties.

Coke Market:

The nationwide average price for Grade I metallurgical coke (dry quenching) stands at 1,440 yuan/mt. The nationwide average price for quasi-Grade I metallurgical coke (dry quenching) is 1,300 yuan/mt. The nationwide average price for Grade I metallurgical coke (wet quenching) is 1,120 yuan/mt, while the quasi-Grade I version averages 1,030 yuan/mt.

On the supply side, coke production remains restricted due to profit losses and environmental protection inspections, with some plants maintaining production curbs. However, downstream purchase volumes have increased, leading to continuous destocking of coke inventories at coke plants. On the demand side, driven by the stronger futures market and rising steel prices, steel mills' profitability has improved. Blast furnace pig iron production maintains high levels, sustaining coke procurement demand. Overall, coke market fundamentals are gradually improving with stable cost support. Short-term coke prices may stabilize temporarily with some upward expectations.