[SMM Coal and Coke Daily Briefing] December 16, 2025

[SMM Coal and Coke Daily Briefing]

Coking coal market:

Low-sulphur coking coal in Linfen was offered at 1,500 yuan/mt. Low-sulphur coking coal in Tangshan was offered at 1,480 yuan/mt.

In terms of raw material fundamentals, approaching year-end, major mines prioritized safety in production, but downstream acceptance of high-priced coal varieties remained low, making it more difficult for mines to conclude transactions. These coal varieties continued to see inventory buildup, while individual oversold varieties saw their online auction prices rebound slightly, with downstream buyers making appropriate purchases. In summary, some high-priced coal varieties still had room for price reductions.

Coke market:

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

Supply side, last week, the second round of coke price cuts was implemented, and the cost of coal charged into blast furnaces also fell, resulting in only a slight contraction in coke plant profits and temporarily stable production enthusiasm. However, coke plant shipments were sluggish, and some coke plants continued to see coke inventory buildup. Demand side, end-use demand for finished steel products did not improve, blast furnace shutdowns and maintenance increased, hot metal production continued to decline, reducing demand for coke. Additionally, steel mills had a desire to bargain down prices and maintained just-in-time procurement. In summary, under the dual pressures of falling costs and weak demand, coke prices were expected to remain in the doldrums in the short term, with expectations for a third round of price cuts.[SMM Steel]