[SMM Coking Coal and Coke Daily Briefing] 20260722

[SMM Daily Brief Commentary on Coking Coal and Coke]

Coking coal market:

Low-sulphur coking coal in Linfen was quoted at 2,020 yuan/mt.

In terms of coking coal, production suspensions and cuts at Shanxi coal mines have been recurring. Output at most mines remains constrained, but some steel mills have initiated the first round of coke price cuts, and market sentiment has pulled back. Failed bids increased in the online auction market for coking coal, and some blending coking coal with relatively high prices proactively adjusted prices downward. In the short term, the coking coal market will remain in the doldrums.

Coke market:

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

In terms of news, on the 22nd, mainstream steel mills lowered their coke purchase prices, with wet-quenched down 50 yuan/mt and dry-quenched down 55 yuan/mt. In terms of supply, with the first round of price cuts implemented, most coke producers are operating at a loss and show average production enthusiasm. However, downstream wait-and-see sentiment is relatively strong, coke producers’ shipments have slowed, and inventory pressure continues to increase. Demand side, steel mills’ hot metal production fell significantly, and the weak trend in end-use consumption is difficult to reverse. Steel prices have continued to weaken, and steel mills are controlling the pace of coke arrivals, showing a strong willingness to pressure coke prices. Overall, coke producers are facing sluggish shipments, and cost support for coke has weakened. Market sentiment has turned colder, and in the short term the coke market may remain in the doldrums, with coke prices still expected to face further price cuts. [SMM Steel]