[SMM Coking Coal and Coke Daily Briefing] 20261013

[SMM Daily Review on Coking Coal and Coke]

Coking coal market:

Linfen low-sulphur coking coal was quoted at 2,250 yuan/mt.

On the coking coal front, most mines in Shanxi have resumed production after the National Day holiday, while some mines are still awaiting acceptance checks. The pace of production resumptions has accelerated, but supply growth is limited due to inspections and capacity constraints. The second round of coke price cuts has been implemented, and coking enterprises are loss-making again, with bearish expectations. They are mainly consuming inventory and making just-in-time procurement. In the short term, spot coking coal may consolidate on a subdued note, with the pace of decline slowing down.

Coke market:

The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) was 2,200 yuan/mt.

On the supply side, coke production was generally stable and inventory was low. Some coking enterprises were operating at relatively high levels and selling actively, maintaining low inventory, which provided some support to spot prices, with no significant inventory pressure for the time being. On the demand side, most steel mills were loss-making and resistant to high-priced raw materials, purchasing only as needed, with limited willingness to restock proactively. Although hot metal consumption provided some rigid support, expectations of negative feedback from steel mill production cuts were rising, and some steel mills arranged maintenance and controlled the pace of coke arrivals. Overall, spot coke fell under pressure in the short term. The second round of price cuts has been implemented, and there is still a possibility of further cuts. However, losses at coking enterprises are prompting willingness to restrict production, and current spot coke inventory at coking enterprises is low, which limits the downside and pace of decline. The coke-steel game will intensify. [SMM Steel]