[SMM Coking Coal and Coke Daily Brief] 20260701

[SMM Coking Coal and Coke Daily Brief]

Coking Coal Market:

Linfen low-sulphur coking coal is quoted at 2,050 yuan/mt.

Regarding coking coal, the resumption of production at mines that had previously halted or cut output has been slow, and with strict safety supervision, supply is unlikely to see significant improvement, providing strong support for prices of key coal types. However, finished steel prices have pulled back, and downstream coke and steel companies are resistant to high-priced resources. In the online auction market, some high-priced coal types have failed to sell.

Coke Market:

The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) is 2,090 yuan/mt.

On the news front, mainstream steel mills in Hebei and Shandong regions have accepted an increase of 50 yuan/mt for wet-quenched coke and 55 yuan/mt for dry-quenched coke, to be implemented from 00:00 on July 1, 2026. Supply side, the ninth round of coke price increases has been implemented, with most coke enterprises profitable and operating at moderate rates. In addition, coke enterprises are proactively selling, keeping their own coke inventories within reasonable ranges. Demand side, hot metal output at steel mills is expected to decline, weakening the rigid demand for coke. Moreover, steel mill profits are thin, limiting their ability to absorb further price hikes. In summary, recent steel price weakness has led to a slight pullback in market sentiment. In the short term, the coke market is likely to remain generally stable with slight rise. [SMM Steel]