[SMM Coal and Coke Daily Briefing] October 23, 2025

[SMM Coal and Coke Daily Brief]

Coking Coal Market:

The low-sulphur coking coal offer in Linfen was 1,560 yuan/mt. The low-sulphur coking coal offer in Tangshan was 1,490 yuan/mt.

Fundamentally, some mines in the Wuhai region suspended production due to environmental protection and safety inspections, leading to a regional supply decrease. Inquiries from downstream traders and actual transaction orders increased, with smooth shipments from mines and varying degrees of decline in coking coal inventory. Additionally, BHP stated on Thursday that the company would be forced to make difficult decisions if its coking coal operations in Australia do not receive regulatory policy support, raising expectations of reduced overseas Australian coal supply. Market bullish sentiment increased, and coking coal prices are expected to be generally stable with a slight rise in the short term.

Coke Market:

The nationwide average price for first-grade metallurgical coke - dry quenching was 1,790 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching was 1,650 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching was 1,440 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching was 1,350 yuan/mt.

In terms of news, there were rumors that the second round of coke price increases was initially expected to be agreed upon on Friday and implemented next Monday (October 27). In terms of supply, coke enterprise profits further decreased, with some enterprises cutting production, leading to an overall stable-to-lower operating rate. Demand side, daily average hot metal production remained at a relatively high level, and stable blast furnace operations at steel mills provided rigid support for coke demand. However, steel mill profits were under pressure, maintenance activities increased, and most mills maintained a purchasing-as-needed strategy. In summary, coke and steel enterprises continued their standoff, and the coke market is expected to hold up well in the short term.[SMM Steel]