[SMM Daily Coke & Coal Brief Review] 20250812

[SMM Daily Coal & Coke Market Review]
Coking Coal Market:
The low-sulphur coking coal in Linfen was quoted at 1,470 yuan/mt, while that in Tangshan was offered at 1,490 yuan/mt.
Raw material fundamentals: Recent safety inspections have slightly reduced coking coal production, with mines fulfilling previous orders and no significant inventory buildup observed. However, end-users remain cautious, showing limited acceptance of high-priced resources, and transaction prices for some coal varieties in online auctions pulled back. Additionally, the National Mine Safety Administration will hold a press conference on the revised "Coal Mine Safety Regulations" at 10:00 AM on August 13, providing support for coking coal prices, with futures showing notable gains. Overall, spot coking coal prices remain stable but are more likely to rise than fall.
Coke Market:
The nationwide average price for first-grade metallurgical coke (dry-quenched) stood at 1,715 yuan/mt, while that for 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 1,280 yuan/mt.
Supply side, cost pressure persists, with most coke producers operating near break-even and limited room for further production increases. However, sales remain smooth without inventory pressure. Demand side, steel mills maintain healthy profits with few voluntary maintenance shutdowns, and hot metal production declines slowly. Coupled with low coke inventories at some mills, overall procurement enthusiasm stays moderate. Market rumors suggest environmental protection-driven production restrictions of 30%-50% for coke producers from August 16 to early September due to the September 3 military parade. In summary, coke supply is unlikely to expand, maintaining a tight fundamental outlook. The short-term coke market may continue to hold up well, with strong expectations for the sixth coke price increase to materialize. [SMM Steel]