[SMM Coking Coal and Coke Daily Briefing] 20260707

[SMM Coking Coal & Coke Daily Brief]

Coking Coal Market:

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

Coking coal side, domestic coal mine safety inspections remain stringent; mines that have passed inspections generally operate at low loads, with production release being relatively slow. Currently, coke and steel makers are seeing razor-thin profits, buying only to restock as needed. Some mines' inventories edged up slightly, but overall remain at mid-to-low levels. Market sentiment shows fear of high prices, with high-priced resources weakening slightly, and mines tend to be more cautious in pricing.

Coke Market:

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

Supply side, after nine rounds of coke price hikes, coke producers' profitability has recovered, and production willingness has picked up. Overall coke production has edged up slightly. At present, coke producers' shipments are moderate, and their own coke inventories are at reasonable levels. Demand side, steel billet prices drift lower, downstream steel product consumption remains sluggish, and steel mill losses are widening further. Several enterprises have already begun maintenance and production cuts, and many more mills plan to arrange maintenance later. Expectations of weakening coke demand continue to intensify. Overall, the trend of declining coke demand is clear. Steel mills have strong resistance to the 10th round of coke price hike, and the tug-of-war between coke and steel players may persist in the near term.[SMM Steel]