[SMM Daily Coke & Coal Brief Review] 20250707

[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.

On the raw material fundamentals front, coal mines maintain normal operations with production cuts observed in some regional mines. Recent improvements in coal shipments have led to declining coking coal inventories at mines, better performance in online bidding, and further reduction in failed auction rates. Market trading sentiment has improved, resulting in temporarily stable coking coal prices in the short term with potential rebounds for certain oversold coal varieties.

Coke Market:

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

In terms of supply, coke producers continue to face losses with limited motivation for production resumptions among previously cut-capacity enterprises. Coke supply remains stable at low levels. Recent increases in downstream purchases have led to continuous inventory de-stocking at coke plants, alleviating sales pressures. On the demand side, influenced by the off-season market, pig iron production from steel mill blast furnaces has declined with buyers maintaining purchasing-as-needed strategies. Overall, coke market fundamentals are approaching equilibrium with stable cost support. Short-term coke prices may remain stable, but the resurgence of US-global tariff conflicts on July 9th could impact the coke futures market, weakening expectations for spot coke price increases. [SMM Steel]