[SMM Daily Coke & Coal Brief Review] 20250717

[SMM Daily Brief on Coal & Coke]

Coking coal market:

Low-sulphur coking coal in Linfen was quoted at 1,320 yuan/mt, while that in Tangshan was offered at 1,230 yuan/mt.

Raw material fundamentals: Recent mine shipments remained smooth with active downstream purchasing enthusiasm and vibrant trading activity, further alleviating mine inventory pressure. Online auctions also performed well, with most coal varieties transacted at premiums and minimal bid failures, while some grades saw price hikes exceeding 100 yuan. Overall, coking coal prices held up well recently, with untuned grades still having room for catch-up increases.

Coke market:

The nationwide average price of first-grade metallurgical coke (dry-quenched) stood at 1,495 yuan/mt, while that of quasi-first-grade (dry-quenched) was 1,355 yuan/mt. First-grade (wet-quenched) averaged 1,170 yuan/mt, with quasi-first-grade (wet-quenched) at 1,080 yuan/mt.

In terms of supply, though the first coke price increase was implemented, coking coal hikes occurred earlier and steeper, keeping most coke producers marginally loss-making with slightly tightened supply. Coupled with smooth shipments, coke inventories stayed low. Demand side: Steel mill profits supported active procurement, while trader diversion constrained some mills' arrivals, triggering urgent delivery requests. Fundamentally, coke maintained sound performance with reinforced cost support. After the first increase, some producers retained bullish expectations, suggesting short-term market may continue holding up well.[SMM Steel]