[SMM Coking Coal Daily Brief] 20250818

[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 1,450 yuan/mt.

Fundamentals of raw materials: Most mines maintain relatively low coking coal inventory levels with limited supply growth. Downstream buyers and traders remain cautious, sticking to just-in-time procurement. Online auction prices show mixed performance. However, with strict supervision on overproduction and safety inspections, mines strongly refuse to budge on prices. Short-term coking coal prices may fluctuate.

Coke market:

The nationwide average price of first-grade metallurgical coke (dry-quenched) stood at 1,790 yuan/mt, while that of quasi-first-grade (dry-quenched) was 1,650 yuan/mt. First-grade metallurgical coke (wet-quenched) averaged 1,440 yuan/mt, and quasi-first-grade (wet-quenched) was priced at 1,350 yuan/mt.

Market news: Major coke producers initiated the seventh round of price increase by 50-55 yuan/mt, effective from 00:00 on August 19. Supply side: Coke producers' profits improved, boosting production enthusiasm. Smooth shipments and relatively small inventory pressure, coupled with anticipated production restrictions ahead of military parade, have tightened coke supply. Demand side: Steel mills' arrival volumes recently improved, but with decent profits and slow hot metal output decline, low-inventory mills remain active in coke procurement. Overall, the coke market is expected to hold up well in the short term.[SMM Steel]