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

Published: Dec 31, 2025 15:23

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[SMM Daily Coal and Coke Briefing] Supply side, the fourth round of coke price cuts has commenced, with most coke producers already experiencing minor losses, leading to reduced production enthusiasm and a slight tightening of coke supply. Demand side, steel mill blast furnace operations remain stable, creating a rigid demand for coke. However, terminal finished product prices continue to decline, and steel mill coke inventory is moderate, resulting in insufficient purchase willingness and a primary focus on purchasing as needed. Overall, the supply-demand structure of coke remains loose, coupled with persistently weak cost support for coke. The fourth round of coke price cuts is expected to be implemented, and the coke market is likely to continue in the doldrums in the short term.

[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]

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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