[SMM Coal and Coke Daily Briefing] December 18, 2025

[SMM Daily Coking Coal & Coke Review]

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.

Raw material fundamentals: Some mines completed their annual targets, cut production voluntarily, and coupled with strict safety inspections, coking coal supply tightened. Recently, downstream mainly consumed previous inventory, auction settlement prices still declined, and some high-priced coal types failed to sell. However, recent frequent market rumors about coking coal stimulated futures to rise, which in turn boosted spot market sentiment, with pessimistic sentiment significantly reduced. In summary, most coking coal prices were expected to stabilize this week.

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, coking plant profits were moderate, not dampening production enthusiasm, but recent environmental protection inspections were strict, many coking plants cut production passively, operating rates declined, and coke supply decreased. Demand side, affected by coke supply reductions and steel mill restocking demand, some low-inventory steel mills restocked slightly. However, the current steel market was in the off-season, most steel mills expanded blast furnace maintenance scope, and coupled with stricter environmental protection-related controls, most steel mills still mainly made just-in-time procurement, and still had expectations for coke price reductions. In summary, the coke supply-demand balance remained loose, and coupled with the previous significant decline in raw material costs, which weakened support for coke costs, the coke market was expected to remain in the doldrums in the short term, with further price reduction expectations.[SMM Steel]