[SMM Daily Coke and Coal Brief Review] 20250724

Published: Jul 24, 2025 17:14

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[SMM Daily Briefing on Coal and Coke] In terms of supply, costs have risen again, with most coking enterprises operating below the break-even point, making it difficult to improve production enthusiasm. Meanwhile, downstream buyers have accelerated their procurement pace, resulting in coking enterprises' coke inventories remaining at a low level. Demand side, the expected decline in pig iron production of steel mill blast furnaces is weak, and there is a rigid demand for coke. Some steel mills with low inventories have a strong willingness to restock coke. In summary, the coke market has shifted to a tight balance. Coupled with the sustained strength in the coking coal market, the short-term coke market may continue to hold up well, with expectations for a third round of price hikes.

[SMM Daily Coking Coal and Coke Market Review]

Coking coal market:

The low-sulphur coking coal offer in Linfen stood at 1,400 yuan/mt, while that in Tangshan was quoted at 1,300 yuan/mt.

Raw material fundamentals: The recent production inspection campaign launched by the National Energy Administration significantly boosted market confidence. Coking coal futures hit the limit-up again today, driving up downstream procurement enthusiasm. Market transactions remained active with favorable online auction results. Short-term coking coal prices are expected to hold up well.

Coke market:

The nationwide average price of first-grade metallurgical coke (dry-quenched) reached 1,550 yuan/mt, while that of quasi-first-grade (dry-quenched) stood at 1,410 yuan/mt. First-grade metallurgical coke (wet-quenched) averaged 1,220 yuan/mt, with quasi-first-grade (wet-quenched) at 1,130 yuan/mt.

In terms of supply, rising costs kept most coke producers operating at a loss, dampening production enthusiasm. Downstream accelerated procurement pace, leaving coke inventories at most plants at low levels. Demand side, pig iron production of steel mill blast furnaces is unlikely to decline significantly, maintaining rigid coke demand. Some low-inventory mills showed strong restocking willingness. Overall, the coke market shifted to tight balance, coupled with sustained strength in coking coal. Short-term coke prices may continue holding up well, with potential for a third round of price hikes.[SMM Steel]

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