[SMM Coking Coal and Coke Daily Brief Review] 20260805

[SMM Daily Coking Coal and Coke Brief]

Coking coal market:

Low-sulphur coking coal in Linfen was quoted at 2,000 yuan/mt.

On the coking coal side, the pace of mine production resumptions fell short of expectations, and overall inventory has not seen significant buildup pressure, providing a floor for coking coal prices. However, end-use demand downstream is weak, market wait-and-see sentiment is strong, and shipments of high-priced coal come under pressure. In the near term, the coking coal market is expected to remain in the doldrums.

Coke market:

The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) was 1,980 yuan/mt.

On the news front, some steel mills in certain regions plan to cut the price of wet quenching coke by 50 yuan/mt and dry quenching coke by 55 yuan/mt, effective from 00:00 on August 7, 2026. In terms of supply, most coke enterprises are operating at a loss, and some have implemented production cuts of varying degrees. However, coke shipments are under pressure, and in-factory inventory continues to build. On the demand side, finished steel prices have started to stabilize, but the decline has been relatively large. Losses at most steel mills have widened further, prompting them to proactively step up production cuts and maintenance, and strictly control the pace of coke arrivals. Overall, market sentiment is subdued, and there are expectations of a third round of coke price cuts. Coke futures are likely to remain in the doldrums in the near term. [SMM Steel]