[SMM Coal and Coke Daily Briefing] December 31, 2025

[SMM Coal and Coke Daily Briefing]

Coking Coal Market:

Low-sulphur coking coal offers in Linfen were 1,600 yuan/mt. Low-sulphur coking coal offers in Tangshan were 1,480 yuan/mt.

Raw material fundamentals, approaching year-end safety inspections have increased, coal mines maintain normal production, and supply increments are limited. Steel mills initiated the fourth round of coke price cuts, market sentiment weakened further, downstream demand is cautious, stockpiling willingness is not strong, the trading sector is mainly in a wait-and-see mode, and spot coking coal market transactions are sluggish, with order signing at some coal mines slowing down. Online transaction prices overall still mainly declined, and some coking coal blends still experienced auction failures. In summary, post-holiday coking coal prices still have some downside room.

Coke Market:

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

Supply side, the fourth round of coke price cuts has commenced in the coke market, and most coke plants are already experiencing minor losses, leading to decreased production enthusiasm and a slight tightening of coke supply. Demand side, current blast furnace operations at steel mills are stable, creating rigid demand for coke, but end-user finished steel prices continue to correct, and steel mill coke inventory is moderate, so purchase willingness for coke is insufficient, with purchasing as needed being the main approach. In summary, the coke supply-demand structure continues loose, coupled with still weak cost support for coke, the implementation of the fourth round of coke price cuts is strongly expected, and the coke market is expected to remain in the doldrums in the short term.[SMM Steel]