[SMM Coal and Coke Daily Briefing] December 19, 2025

[SMM Coal and Coke Daily Briefing]

Coking Coal Market:

The low-sulphur coking coal offer in Linfen was 1,500 yuan/mt. The low-sulphur coking coal offer in Tangshan was 1,480 yuan/mt.

Fundamentals for the raw material, mines proactively controlled production due to factors such as safety production and the completion of annual production tasks, leading to a tightening of coking coal supply. Recently, the market has expectations for a third round of coke price cuts, resulting in similarly weak expectations for coking coal prices. Downstream buyers primarily made just-in-time procurement, with limited restocking demand. Inventory at some mines continued to accumulate. However, coking coal futures rose, and market sentiment improved somewhat. Coking coal prices may begin to stabilize next week, with some key coal grades expected to rebound.

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.

In terms of news, some steel mills initiated a third round of coke price cuts, reducing wet-quenched coke by 50 yuan/mt and dry-quenched coke by 55 yuan/mt, effective from 00:00 on December 22, 2025. Supply side, environmental protection policy became stricter recently, forcing coke enterprises to continue production restrictions. Coke oven operating rates continued to decline, leading to a reduction in coke supply. However, most coke enterprises still maintained profits, and production enthusiasm was moderate. Demand side, end-use demand for finished steel remained poor, leading to a seasonal decrease in the daily average hot metal output at steel mills. Some mills controlled coke inventory and maintained just-in-time procurement for coke. In summary, coke demand is still expected to weaken, coupled with poor profitability at steel mills. The coke market is likely to be in the doldrums next week, with expectations for a third round of price cuts.[SMM Steel]