[SMM Daily Coke & Coal Brief Comment] 20250801

[SMM Daily Coking Coal & Coke Market Review]

Coking coal market:

Low-sulphur coking coal in Linfen was quoted at 1,500 yuan/mt. Low-sulphur coking coal in Tangshan was quoted at 1,300 yuan/mt.

Raw material fundamentals: Affected by heavy rains, some mines in the main production areas of Shanxi, Shaanxi, and Inner Mongolia remained suspended. Coupled with recent strict inspections on overproduction, mine production resumptions were delayed, leading to relatively slow recovery in coking coal supply. Mine shipments were smooth, with active order signing and strong futures trading volume. However, downstream buyers slowed procurement of some high-priced coal varieties, and with coking coal futures declining significantly again, prices faced difficulty sustaining substantial further increases.

Coke market:

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

Market updates: Steel mills temporarily rejected the fifth round of proposed price hikes this week, deferring decisions until next week based on market conditions. Supply side: Rising coal costs continued squeezing coke producers' margins, keeping production enthusiasm subdued. Coke output showed slight recovery, with smooth shipments and inventories remaining low. Demand side: Steel mills maintained high production enthusiasm amid favorable profitability, but hindered transportation due to storms slowed coke deliveries, keeping procurement active. Overall, the coke market maintained tight fundamentals, with prices expected to hold generally stable with slight rise in the short term. [SMM Steel]