[SMM Daily Coke & Coal Briefing] 20250725

[SMM Daily Coking Coal & Coke Market Review]

Coking coal market:

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

Raw material fundamentals: Coal producers maintained stable operations, but the National Energy Administration is expected to inspect overcapacity mines, tightening supply expectations. Some coke plants with low raw coal inventories remained active in restocking, driving continued price increases at production areas. Online auctions saw further price hikes for certain coal varieties, with some transactions rising over 300 yuan. Additionally, the second round of coke price hikes was implemented, and the 4.2-magnitude earthquake in Linfen, Shanxi on Friday reignited market sentiment. In summary, the coking coal market may continue to hold up well in the short term.

Coke market:

The nationwide average price of first-grade metallurgical coke (dry-quenched) reached 1,605 yuan/mt, while quasi-first-grade dry-quenched coke averaged 1,465 yuan/mt. First-grade wet-quenched coke stood at 1,270 yuan/mt, with quasi-first-grade wet-quenched coke at 1,180 yuan/mt.

Mainstream steel mills in Hebei and Shandong have accepted the third round of coke price increases of 50-55 yuan/mt. Supply side: Coke plants face high coal input costs, with some still operating at losses under production constraints, yet shipments remain smooth with queuing observed. Demand side: Blast furnace operations maintain high utilization rates, providing solid demand support. Overall, coke fundamentals are tightening, with strong cost support and prevalent holding-back sentiment among producers, suggesting the market may continue to hold up well short-term. [SMM Steel]