[SMM Daily Coke & Coal Briefing] July 29, 2025

[SMM Daily Coal & Coke Market Review]

Coking coal market:

The low-sulphur coking coal offer in Linfen stood at 1,450 yuan/mt, while that in Tangshan was quoted at 1,300 yuan/mt.

Raw material fundamentals: Persistent extreme rainstorms in the major coal-producing regions of Shanxi, Shaanxi, and Inner Mongolia led to a temporary tightening of coking coal supply. Supported by rigid procurement demand from coke and steel enterprises and speculative demand release, coal mines reported smooth shipments. Coupled with the implementation of the fourth round of coke price increases, coking coal prices are expected to rise further in the short term.

Coke market:

The nationwide average price of first-grade metallurgical coke (dry-quenched) was 1,660 yuan/mt, while that of quasi-first-grade (dry-quenched) stood at 1,520 yuan/mt. The nationwide average price of first-grade metallurgical coke (wet-quenched) was 1,320 yuan/mt, and quasi-first-grade (wet-quenched) at 1,230 yuan/mt.

Mainstream steel mills in Hebei and Shandong officially accepted the fourth round of coke price hikes of 50-55 yuan/mt, while major coke producers initiated the fifth round of increases. Supply side: Coke producers' profits improved again, but production levels remained low. Downstream steel mills and traders actively procured, ensuring smooth coke shipments. Demand side: Supported by profits, hot metal production continued to fluctuate at highs, with weak expectations for production cuts, maintaining rigid demand for coke. In summary, coke supply remains tight overall, and the coke market is expected to hold up well in the short term.[SMM Steel]