[SMM Coal and Coke Daily Briefing] December 11, 2025

Published: Dec 11, 2025 17:28

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[SMM Coal and Coke Daily Briefing] Supply side, the second round of coke price cuts commenced, further squeezing coke enterprise profits. Coupled with stricter environmental protection policies, coke producers were forced to implement production cuts and restrictions, leading to a decline in coke output. Demand side, off-season characteristics became increasingly evident as steel prices continued to fall, keeping steel mill profits in negative territory. Moreover, blast furnace production cuts and maintenance gradually increased, lowering overall operating rates and reducing daily coke consumption. Additionally, most steel mills maintained coke inventories at reasonable levels, prompting cautious procurement and controlled arrival schedules. Overall, the coke market remained in the doldrums in the short term.

[SMM Coal and Coke Daily Brief]

Coking coal market:

Low-sulphur coking coal offers in Linfen were 1,500 yuan/mt. Low-sulphur coking coal offers in Tangshan were 1,530 yuan/mt.

Raw material fundamentals, some mines have completed their annual targets and are proactively controlling production, coupled with an orange environmental protection alert in the Linfen area, washing enterprises have suspended operations, leading to limited overall increase in coking coal supply. Recently, the cost-effectiveness of some coal types has increased after price reductions, prompting downstream buyers to moderately increase procurement. However, acceptance of high-priced coal types remains weak, and there are expectations for further price declines for some coking coal.

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.

In terms of supply, the second round of coke price reduction has begun, which may further compress coke enterprise profits. Combined with increasingly stringent environmental protection policies, coke enterprises are facing passive production cuts and restrictions, leading to a decrease in coke production. Demand side, off-season characteristics are becoming more apparent, with steel prices continuing to fall, resulting in ongoing losses for steel mills. Furthermore, blast furnace production cuts and maintenance are gradually increasing, leading to a decline in the overall operating rate and a pull back in daily coke consumption. Additionally, as coke inventory at most steel mills is currently at reasonable levels, they maintain a cautious attitude towards coke procurement, mostly controlling the pace of arrivals. Overall, the coke market is expected to be in the doldrums in the short term.[SMM Steel]

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