[SMM Coking Coal and Coke Daily Brief] 20260612

[SMM Daily Briefing on Coking Coal and Coke]

Coking Coal Market:

Linfen low-sulphur coking coal was quoted at 1,980 yuan/mt.

On the coking coal side, safety inspections have become stricter across the board due to the combined impact of coal mine accidents and the June Safety Month, leading to production suspensions and output cuts at many mines and tightening raw coal supply. Coupled with the implementation of the sixth round of coke price increases, coking plants and traders have been purchasing actively, leaving coal mine inventories low and supplies tight. The market holds strong bullish expectations, and coal prices still have upward momentum.

Coke Market:

The nationwide average price of quasi-first-grade metallurgical coke (dry quenching) stood at 1,925 yuan/mt.

On the news front, some regional steel mills have accepted an increase of 50 yuan/mt for wet-quenched coke and 55 yuan/mt for dry-quenched coke, to be implemented from midnight on June 15, 2026 (the seventh round). In terms of supply, with the moderation in coking coal price rises, although the sixth round of coke price increases has taken effect, coking plants still face cost pressure and loss-making conditions have not substantially improved. Stricter safety inspections have also constrained capacity release at coking plants. Meanwhile, active procurement by downstream steel mills has kept coking plant inventories low, and coke supply remains persistently tight. On the demand side, steel mills are currently operating stably with high hot metal output, ensuring solid fundamental demand for coke, while low-inventory mills show strong willingness to restock. Overall, the cost side provides strong support; steel mill arrivals are tight and overall inventories are low, sustaining the tight supply situation. The market is expected to hold up well next week, with strong expectations for the seventh round of coke price increases to be implemented. [SMM Steel]