[SMM Daily Coke & Coal Brief Review] 20250718

Published: Jul 18, 2025 17:11

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[SMM Daily Briefing on Coal and Coke] In terms of supply, downstream buyers have been actively procuring, and coke producers have seen good shipments, with coke inventory remaining at a low level. However, coke producers have recently been operating at a loss, with production restrictions in place. Moreover, due to stricter environmental protection measures in the Wuhai region, production restrictions have been intensified. Demand side, steel mill profits have been favorable, with operating rates maintained at a relatively high level. There is a rigid demand for coke from steel mills, and with traders diverting some of the supply, some steel mills are urging for faster deliveries. In summary, the supply of coke has begun to tighten, and cost support remains strong. The coke market may continue to hold up well in the short term, with expectations of further price increases next week.

[SMM Daily Coking Coal & Coke Market Review]

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: Mines gradually resumed production, restoring coking coal output. With the first coke price increase implemented, market sentiment strengthened, ensuring smooth mine shipments. Downstream procurement demand rose amid incomplete production recovery at some mines, pushing up quotations for certain coal varieties. Supported by restocking demand, coking coal prices are expected to rise further in the short term.

Coke market:

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

Supply side: Active downstream procurement ensured smooth coke enterprise shipments, keeping inventories low. However, ongoing losses led to production restrictions, exacerbated by tightened environmental policies in Wuhai. Demand side: Improved steel mill profitability maintained high operating rates, sustaining rigid coke demand. Traders diverting supplies prompted some mills to expedite deliveries. Overall, coke supply tightened amid strong cost support, with prices likely to hold up well in the short term and further increases anticipated next week.[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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