[SMM Coal and Coke Daily Briefing] 20251210

[SMM Daily Coking Coal and Coke Briefing]

Coking Coal Market:

The offer price for low-sulphur coking coal in Linfen was 1,500 yuan/mt. The offer price for low-sulphur coking coal in Tangshan was 1,530 yuan/mt.

In terms of raw material fundamentals, some mines have halted or cut production due to factors such as completing annual targets and relocating underground working faces, leading to limited overall supply growth for coking coal. However, trading activity in the coking coal market has been generally subdued recently, with some mines experiencing sluggish shipments and a slight inventory build-up. Online auctions primarily concluded with price reductions, indicating weak support for coking coal prices in the short term.

Coke Market:

The nationwide average price for first-grade metallurgical coke - dry quenching was 1,900 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching was 1,760 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching was 1,540 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching was 1,450 yuan/mt.

On the news front, some steel mills initiated a second round of coke price reduction requests, proposing cuts of 50 yuan/mt for wet-quenched coke and 55 yuan/mt for dry-quenched coke, effective from 00:00 on December 12, 2025. Supply side, as severe weather alerts were successively issued in multiple regions, coke plant production and transportation were affected, forcing some plants to cut production. Coke production is expected to decrease, improving the previously loose supply situation. Demand side, amid fluctuating finished steel prices, steel mills increased blast furnace maintenance plans, and daily average hot metal output still has further downside room. Rigid demand for coke weakened, compounded by the lack of improvement in end-use demand, leading steel mills to primarily make just-in-time procurement for coke. In summary, with the emergence of the second round of coke price reductions and insufficient market confidence, the coke market is likely to remain in the doldrums in the short term. [SMM Steel]