[SMM Daily Coke and Coal Briefing] 20250709

[SMM Coal & Coke Daily Brief Review]

Coking coal market:

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

On the raw material fundamentals front, coal mines are gradually resuming production with coking coal supply expected to recover steadily. Downstream purchase willingness remains unabated, coal mine inventories have been brought under control, and market sentiment has improved. Prices for certain coal types have been raised sequentially, with overall coking coal prices maintaining stability, though a few coal types experienced delayed price corrections due to slower prior adjustments.

Coke market:

National average price for Grade I metallurgical coke (dry quenching) stands at 1,440 yuan/mt. National average price for quasi-Grade I metallurgical coke (dry quenching) is 1,300 yuan/mt. National average price for Grade I metallurgical coke (wet quenching) is 1,120 yuan/mt. National average price for quasi-Grade I metallurgical coke (wet quenching) is 1,030 yuan/mt.

In terms of supply, most coking enterprises are operating at losses with production restrictions implemented, leading to tighter coke supply. Coupled with active downstream purchases, coking enterprises continue to deplete inventories. On the demand side, steel mill blast furnace pig iron production remains at high levels, creating rigid demand for coke. Some steel mills with low inventories show strong purchase enthusiasm. In summary, with coke supply tightening, downstream rigid demand persisting, and market sentiment improving, the short-term coke market is expected to hold up generally stable with slight upward momentum, and price increase expectations exist. [SMM Steel]