[SMM Coal and Coke Daily Brief] September 28, 2025

[SMM Coal and Coke Daily Briefing]

Coking coal market:

Low-sulphur coking coal in Linfen was offered at 1,510 yuan/mt. Low-sulphur coking coal in Tangshan was offered at 1,450 yuan/mt.

In terms of raw material fundamentals, prior to the Mid-Autumn Festival and National Day holiday, mine safety inspection pressure intensified, limiting production release, while market trading activity improved. Large-scale mine online auctions saw almost no failed sales. However, following the rebound, due to generally moderate downstream profits, sales pressure increased for some high-priced coal varieties.

Coke market:

The nationwide average price for Grade One Metallurgical Coke - Dry Quench was 1,735 yuan/mt. The nationwide average price for Quasi-Grade One Metallurgical Coke - Dry Quench was 1,595 yuan/mt. The nationwide average price for Grade One Metallurgical Coke - Wet Quench was 1,390 yuan/mt. The nationwide average price for Quasi-Grade One Metallurgical Coke - Wet Quench was 1,300 yuan/mt.

Supply side, coke enterprise profits narrowed further recently, but normal production was maintained. Additionally, coke enterprise coke inventory fell to low levels, increasing reluctance to sell among some coke enterprises. Demand side, steel mill hot metal production continued to rebound, coupled with pre-holiday restocking demand from some mills, providing solid support for rigid coke demand. However, narrowed steel mill profits and poor end-user finished steel consumption led to a cautious procurement attitude among some mills. In summary, coke fundamentals improved, but constrained by weak end-user finished steel consumption, the short-term standoff between coke and steel enterprises is likely to persist, and the implementation of the first coke price increase requires more time.[SMM Steel]