[SMM Coking Coal and Coke Daily Brief] 20260602

[SMM Coking Coal & Coke Daily Brief]

Coking coal market:

Linfen low-sulphur coking coal was quoted at 1,800 yuan/mt.

Coking coal side, as June marks the safety month, Shanxi continued to strictly enforce safety inspections. Combined with multiple previous major coal mine accidents, safety supervision has been continuously upgraded, leading to a substantial tightening of coking coal supply. In addition, some mines still had low production after resuming production, and mines had more pre-sale orders. In the short term, the coking coal market is likely to hold up well.

Coke market:

The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) was 1,815 yuan/mt.

In terms of supply, expectations for the fifth round of coke price increase to be implemented were strong. However, coking costs continued to increase, squeezing coke producers' profits and dampening their production enthusiasm. Coke production is expected to tighten. Moreover, coke producers saw smooth shipments, and coke inventory remained at low levels. Demand side, steel mill profits were moderate, and hot metal production from blast furnaces fluctuated at highs, supporting strong rigid demand for coke. Some steel mills had low coke inventory and continued to actively restock. In summary, the coke supply-demand pattern remained tight, with strong cost support. In the short term, the coke market is expected to hold up well, and the fifth round of price increase is about to be implemented. [SMM Steel]