[SMM Coking Coal and Coke Daily Brief] 20260904

[SMM Daily Review of Coking Coal and Coke]

Coking coal market:

Linfen low-sulphur coking coal was quoted at 2,550 yuan/mt.

For coking coal, safety inspections in Shanxi remained highly intensive, and the progress of coal mine production resumptions fell far short of expectations. As of early September, a large number of coal mines in Shanxi were still suspended, so expectations of a significant short-term increase in coking coal supply remained low. In addition, Mongolian coking coal, an important supplement, saw sustained low clearance volumes recently, and inventories at the Ganqimaodu port continued to decline. The coking coal market is likely to hold up well next week.

Coke market:

The nationwide average price of quasi-first-grade metallurgical coke (dry-quenched) was 2,310 yuan/mt.

In terms of supply, coking costs continued to increase. After the fourth round of coke price increases took effect, most coke producers remained in a state of significant losses, and coke supply continued to decrease. Coupled with strong downstream purchasing enthusiasm, in-factory inventory at coke producers was drawn down at an accelerated pace. In terms of demand, daily average hot metal production at downstream steel mill blast furnaces fluctuated at highs, creating strong rigid demand for coke. Moreover, due to high daily coke consumption and delayed coke arrivals, steel mills' own coke inventories continued to decline, prompting them to urge deliveries. However, rising costs intensified steel mill losses, and some steel mills began blast furnace maintenance, increasing the risk of negative feedback on the demand side. In summary, the coke spot market is expected to continue to hold up well next week, and there is still a strong possibility that the fifth round of coke price increases will take effect. [SMM Steel]