[SMM Survey Daily Coal and Coke Brief] 20250828

[SMM Daily Coking Coal & Coke Brief]

Coking coal market:

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

Fundamentals of raw materials: frequent mine accidents have led to many mine suspensions in Shanxi and other regions, resulting in tight supply and strong reluctance to budge on prices from mines. However, spot coking coal transactions are average, with downstream buyers and traders mainly adopting a wait-and-see stance. In the short term, coking coal prices are expected to be generally stable with slight fall.

Coke market:

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

In terms of supply, coke producers' profits have improved significantly, but with the parade approaching, production restrictions have been implemented in Henan and Shandong, further tightening supply. Additionally, coke producers are shipping smoothly, with relatively small inventory pressure. Demand side, transportation efficiency in the Beijing-Tianjin-Hebei region has declined due to traffic control, slowing the arrival of goods at steel mills. However, affected by the parade, more steel mills are facing production restrictions, and with weakening expectations in the steel market, most steel mills purchase as needed. In summary, the game mentality between coke and steel enterprises has intensified, and the coke market is expected to remain stable in the short term.[SMM Steel]