[SMM Daily Coke & Coal Brief Comment] 20250801

Published: Aug 1, 2025 17:26

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[SMM Daily Briefing on Coking Coal and Coke] In terms of news, steel mills have not accepted the fifth round of price hikes this week and plan to make a decision next week based on market conditions. In terms of supply, the cost of coal fed into the blast furnace continues to squeeze the profits of coke enterprises, resulting in generally average production enthusiasm. Coke production has recovered slightly, with smooth shipments and low inventory levels. In terms of demand, steel mills have good profitability and maintain high production enthusiasm. However, due to the impact of heavy rainfall, transportation has been hindered, and the arrival of coke at steel mills has slowed down somewhat, with steel mills actively purchasing coke. In summary, the fundamental situation of coke remains tight, and the coke market will generally be stable with a slight rise in the short term.

[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]

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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