[SMM Coal and Coke Daily Briefing] 20251229

Published: Dec 29, 2025 16:30

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[SMM Daily Coal and Coke Briefing] News-wise, some steel mills cut prices for wet-quenched coke by 50 yuan/mt and for dry-quenched coke by 55 yuan/mt, effective from 00:00 on January 1, 2026. In terms of supply, coking plants are not suffering severe losses, which has a relatively small impact on production enthusiasm; coke supply remains stable for now. However, recent shipments from coking plants have been sluggish, leading to some accumulation of coke inventory. Demand side, hot metal production of steel mill blast furnaces continued to decline, weakening rigid demand. Additionally, end-user finished steel consumption fell short of expectations, making it difficult for steel mills to improve profitability. Coupled with reasonable levels of coke inventory at steel mills, there has been an increase in efforts to control coke arrivals. Overall, market sentiment is tilted toward pessimism, and with weak cost support, coke prices are expected to remain under pressure this week, and the fourth round of price cuts is strongly anticipated.

[SMM Daily Brief Comment on Coal and Coke]

Coking Coal Market:

The quoted price of low-sulphur coking coal in Linfen is 1,600 yuan/mt, while that in Tangshan is 1,480 yuan/mt.

In terms of raw material fundamentals, the production of some coal mines has plummeted due to the impact of safety accidents and the completion of annual capacity tasks. However, the market still holds expectations for a decline in coke prices, with negative feedback transmitted upstream, resulting in a relatively high rate of failed online auctions for coking coal. This week, coking coal prices are expected to be in the doldrums.

Coke Market:

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

In terms of news, some steel mills have reduced the prices of wet-quenched coke by 50 yuan/mt and dry-quenched coke by 55 yuan/mt, effective from midnight on January 1, 2026. In terms of supply, coke enterprises are not suffering severe losses, which has a relatively small impact on production enthusiasm, and coke supply remains stable for the time being. However, coke enterprises have encountered difficulties in shipments recently, leading to a certain accumulation of coke inventory. In terms of demand, the hot metal production of steel mill blast furnaces continues to decline downstream, weakening rigid demand. Moreover, the performance of terminal steel product consumption has fallen short of expectations, making it difficult for steel mills to improve profitability. Additionally, with steel mills' coke inventory at a reasonable level, there has been an increase in controlling coke arrivals. In summary, market sentiment is relatively pessimistic, coupled with weak cost support, coke prices are expected to remain under pressure this week, and there is a strong expectation for the implementation of the fourth round of price reductions. [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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