[SMM Daily Coke & Coal Briefing] 20250805

[SMM Daily Coal & Coke Market Review]

Coking coal market:

Low-sulphur coking coal in Linfen was quoted at 1,500 yuan/mt, while that in Tangshan was offered at 1,490 yuan/mt.

Raw material fundamentals: Coal mine production resumptions progressed slowly, while downstream buyers were in the restocking cycle, leading to smooth mine shipments. Coupled with market rumors that the National Energy Administration recently spearheaded coal capacity verification work, coking coal futures surged sharply, further lifting market expectations. Spot coking coal prices still have some upside potential.

Coke market:

The nationwide average price of first-grade metallurgical coke (dry-quenched) stood at 1,715 yuan/mt, while that of quasi-first-grade (dry-quenched) was 1,575 yuan/mt. First-grade (wet-quenched) averaged 1,370 yuan/mt, and quasi-first-grade (wet-quenched) was 1,280 yuan/mt.

In terms of supply, coke producers' profits remained moderate with limited willingness to ramp up output, maintaining stable operations. Current coke shipments flowed smoothly, with inventories continuing to decline. Demand side, steel mill profits stayed decent, with blast furnace operations sustaining high levels, underpinning rigid coke demand. Overall, mills actively purchased coke amid sustained cost support, suggesting short-term coke prices still face upward expectations. The anticipated production restrictions for steel mills during the September military parade are expected to have a relatively small impact on near-term coke prices.[SMM Steel]