[SMM Daily Coke & Coal Brief Review] 20250707

Published: Jul 7, 2025 17:25

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[SMM Daily Coke Market Review] In terms of supply, coke enterprises are still experiencing certain losses. Those that have cut production earlier lack the motivation to resume production, so coke supply remains low and stable. Additionally, the recent increase in downstream purchases has led to a continuous reduction in coke enterprises' coke inventories, alleviating their sales pressure. On the demand side, affected by the off-season market, pig iron production of steel mill blast furnaces has declined, and steel mills are maintaining purchasing as needed. In summary, the fundamentals of the coke market are tending towards balance, with stable cost support. In the short term, coke prices may remain stable. However, on July 9th, the US reignited global tariff conflicts, which may impact the coke futures market and weaken expectations for an increase in coke spot prices.

[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]

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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