[SMM Coking Coal & Coke Daily Brief] 20260626

[SMM Daily Review on Coking Coal and Coke]

Coking coal market:

Low-sulphur coking coal in Linfen is quoted at 2,040 yuan/mt.

Coking coal side, mines in Shanxi that had halted production are resuming at a slow pace, and market rumors say that all miners in a certain region will fully shut down mines starting from the 29th, leaving coking coal output still low. Recently, online auctions mostly saw transactions at original prices, with limited premium for coking coal, a significantly higher failure rate, and prices of some high-priced coal types starting to soften. However, as the ninth round of coke price increase has kicked off, some market participants remain calm, and mines are willing to hold prices firm.

Coke market:

The nationwide average price of dry-quenched quasi-first-grade metallurgical coke stands at 2,035 yuan/mt.

Supply side, cost pressure on coke producers persists, constraining production enthusiasm. Currently, most coke producers are maintaining the production restriction levels from the previous period, while their shipment pace is relatively fast, keeping low inventories. Demand side, hot metal output at steel mills is expected to see a slight reduction; steel mills remain fairly active in purchasing coke. However, the finished steel market is in an off-season, leaving steel mill profits in poor shape. Meanwhile, Tangshan has introduced emission reduction and production cut policies, hurting rigid demand for coke. In summary, the coke market is likely to be generally stable with a slight rise in the short term, and the ninth round of coke price increase is still expected to be implemented. [SMM Steel]