[SMM Coal and Coke Daily Briefing] 20251226

Published: Dec 26, 2025 16:53

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[SMM Daily Coal and Coke Briefing] Supply side, the impact of environmental protection inspections has weakened, with some coke producers showing increased production enthusiasm. However, most coke enterprises are operating at a loss, leading to a decline in production willingness, and the increase in coke supply is not significant. Downstream demand has not been released, and coke inventory at some producers continues to accumulate. Demand side, finished steel consumption remains weak, and steel mills are under profit pressure, maintaining a just-in-time procurement strategy for coke. Their enthusiasm for restocking is moderate, and coupled with coke inventory at steel mills being within a reasonable range, the pace of coke procurement has slowed down. Overall, the coke market remains relatively loose in terms of supply and demand. Coke prices may continue to be under pressure next week, and a fourth round of price cuts for coke cannot be ruled out.

[SMM Coal and Coke Daily Briefing]

Coking Coal Market:

Low-sulphur coking coal in Linfen is offered at 1,600 yuan/mt. Low-sulphur coking coal in Tangshan is offered at 1,480 yuan/mt.

Raw material fundamentals, a coal mine accident occurred in Yunnan, leading to temporary shutdowns and rectifications of local mines, exacerbating the tight supply of coking coal. However, the proportion of failed online auctions remains high recently, and coking coal prices still face downward expectations, while prices for some high-quality skeletal coal types remain firm. In summary, the coking coal market is expected to operate generally stable with slight fall next week.

Coke Market:

The nationwide average price for first-grade metallurgical coke - dry quenching is 1,790 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - dry quenching is 1,650 yuan/mt. The nationwide average price for first-grade metallurgical coke - wet quenching is 1,440 yuan/mt. The nationwide average price for quasi-first-grade metallurgical coke - wet quenching is 1,350 yuan/mt.

In terms of supply, the impact of environmental protection inspections has weakened, and production enthusiasm has increased at some coke enterprises, but most coke enterprises are operating at a loss, leading to a decline in production willingness, resulting in an insignificant increase in coke supply. Downstream demand has not been released, and coke inventory at some coke enterprises continues to accumulate. Demand side, finished steel consumption performance is poor, steel mills are under profit pressure, maintaining a just-in-time procurement strategy for coke, with general restocking enthusiasm. Additionally, as coke inventory at steel mills is within a reasonable range, the pace of coke procurement has slowed down. In summary, the coke market supply and demand remain relatively loose, coke prices are expected to remain under pressure next week, and a fourth round of coke price cuts cannot be ruled out.[SMM Steel]

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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