[SMM Daily Coke & Coal Brief Review] 20250704

Published: Jul 4, 2025 17:14

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[SMM Daily Briefing on Coal and Coke] In terms of supply, affected by profit losses and environmental protection inspections, coke producers' production has been restricted. Some coke producers still maintain a certain degree of production restrictions. However, the purchase volume from downstream buyers has increased, and coke inventories at coke producers have continued to decline. Demand side, driven by the strength of the futures market and the rise in steel prices, steel mills' profitability has improved. Pig iron production from blast furnaces has remained high, and the demand for coke procurement has continued to be released. In summary, the fundamentals of coke are gradually improving, with stable cost support. In the short term, coke prices may remain stable, with a certain expectation of a price increase.

[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.

[SMM Steel]

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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