[SMM Daily Coke & Coal Brief Review] 20250807

[SMM Daily Coking Coal and 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: With ongoing overproduction inspections at Shanxi mines, coking coal supply is expected to tighten. The relatively small inventory pressure has strengthened producers' willingness to refuse to budge on prices or even raise them. However, cautious purchasing from downstream buyers has cooled the bullish sentiment. Overall, coking coal prices remained stable, with slight rises seen in quotations for some scarce coal varieties.

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 metallurgical coke (wet-quenched) averaged 1,370 yuan/mt, and quasi-first-grade (wet-quenched) was priced at 1,280 yuan/mt.

Supply side: Coke producers saw improved profitability, leading to increased supply. Current shipments remain smooth, with inventories maintained at low levels. Demand side: Steel mills reported better arrival rates, with coke inventories gradually building up. However, sustained high hot metal production at blast furnaces maintains rigid coke demand, keeping procurement rhythms steady. Overall, improved mill arrivals have eased the supply-demand imbalance, but strong cost support suggests the coke market may hold up well in the near term.