[SMM Daily Coke & Coal Briefing] 20250813

[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: Some mines suspended production while others resumed, leaving coking coal supply not fully restored. Recently, downstream buyers mainly adopted a wait-and-see approach. Online auctions fell short of expectations with rising proportions of failed bids. Prices of some over-increased coal grades declined, but mine shipments remained smooth overall. With relatively small inventory pressure, coking coal prices are expected to hold steady.

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.

Some steel mills have accepted the sixth round of coke price increases at 50-55 yuan/mt, effective from 00:00 on August 14. Supply side: Recent cost pressure relief for coking plants has improved their operating conditions, but production release remains limited. Additionally, affected by the military parade, Shandong coking plants received verbal notices of environmental protection-driven production restrictions requiring 30-50% output cuts, which will further constrain coke supply. Demand side: Though hot metal output is declining slowly, it remains at high levels, sustaining rigid coke demand. Some low-inventory steel mills have restocking needs. In conclusion, with the parade approaching, the tight coke supply-demand balance will become more pronounced. The coke market is expected to hold up well in the short term, and the sixth round of price increases is expected to materialize soon.[SMM Steel]