[SMM Coking Coal Daily Brief] 20250825

[SMM Daily Coking Coal and Coke Brief]

Coking coal market:

Low-sulphur coking coal in Linfen was offered at 1,470 yuan/mt. Low-sulphur coking coal in Tangshan was offered at 1,450 yuan/mt.

In terms of raw material fundamentals, frequent mine accidents kept supply tight without significant improvement, but market sentiment cooled down. Downstream coke and steel companies showed poor acceptance of high-priced resources, and prices for these high-priced coal varieties may experience some pullback.

Coke market:

The nationwide average price for first-grade metallurgical coke - dry quench was 1,845 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quench was 1,705 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quench was 1,490 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quench was 1,400 yuan/mt.

On the news front, according to requirements from Henan environmental protection authorities, coking companies in the province implemented production restrictions of 25%-30% starting August 25. Some coke companies initiated the eighth round of coke price increases, with a range of 50-55 yuan/mt, effective from 00:00 on August 26. Supply side, coke companies' profits improved, boosting production enthusiasm, but with the parade approaching, some received production restriction notices. Coupled with smooth shipments, overall coke inventory remained low. Demand side, steel mills maintained high operating rates and rigid demand for coke, with restocking willingness still present. However, as coke prices were already high, most steel mills primarily purchased as needed. In summary, coke fundamentals remained tight, and even though wait-and-see sentiment gradually increased, the coke market was likely to hold up well in the short term, generally stable with a slight rise.[SMM Steel]