[SMM Daily Coke & Coal Brief Review] 20250722

Published: Jul 22, 2025 17:22

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[SMM Daily Review of Coking Coal and Coke] Some steel mills in Shandong and Hebei have accepted the second round of coke price increase, which will be implemented at midnight on July 23, 2025. In terms of supply, coking coal prices have continued to rise recently, making it difficult for coking enterprises to repair their profits, and their production enthusiasm remains average. However, downstream procurement demand continues to be released, accelerating the de-stocking of coke inventory at coking enterprises. Demand side, coking coal and coke futures are leading the gains in the ferrous metals series, with steel prices continuing to rise. Steel mills have low willingness to cut production, showing strong rigid demand for coke. In summary, there is a strong expectation for coking coal prices to rise, providing strong cost support for coke. Coupled with the tight balance in the coke market fundamentals, the coke market is expected to hold up well in the short term, awaiting the implementation of the second round of price increases.

[SMM Daily Coking Coal & Coke Market Review]

Coking coal market:

Low-sulphur coking coal in Linfen was quoted at 1,320 yuan/mt, while Tangshan low-sulphur coking coal was offered at 1,300 yuan/mt.

Raw material fundamentals: Mines maintained normal operations, downstream procurement enthusiasm increased, and mine shipments remained smooth. Quotations for some coal varieties continued to rise. Recently, the National Energy Administration issued an inspection notice requiring all overcapacity mines to suspend production for rectification, boosting market sentiment. Futures market directly hit limit-up, significantly expanding the upside potential for spot coking coal. In summary, coking coal prices are expected to hold up well in the short term.

Coke market:

Nationwide average prices: Grade-1 metallurgical coke (dry-quenched) at 1,495 yuan/mt, quasi-Grade-1 metallurgical coke (dry-quenched) at 1,355 yuan/mt, Grade-1 metallurgical coke (wet-quenched) at 1,170 yuan/mt, and quasi-Grade-1 metallurgical coke (wet-quenched) at 1,080 yuan/mt.

Some steel mills in Shandong and Hebei have accepted the second round of coke price increases, effective from 00:00 on July 23, 2025. Supply side: Recent continuous rises in coking coal prices made it difficult for coke producers to restore profits, resulting in moderate production enthusiasm. However, downstream procurement demand kept being released, accelerating inventory drawdowns at coke plants. Demand side: Coke futures led gains in the ferrous metals series, steel prices continued rising, and steel mills showed low willingness for production cuts, maintaining robust rigid demand for coke. In conclusion, with strong expectations for coking coal price increases providing solid cost support, coupled with coke fundamentals approaching tight balance, the coke market is expected to hold up well in the short term, awaiting the implementation of the second round of price hikes. [SMM Steel]

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