[SMM Sheets & Plates Daily Review] Social inventory is expected to see a temporary buildup of stock, while expectations of the ninth round of coke price increases support costs.

Persistent heat and drought have sharply reduced water levels in the Danube, leaving nuclear plants in Romania and Hungary at risk of shutdowns or further output cuts due to insufficient cooling water. On August 3, the Romanian Navy blasted rocks in the Bala channel and prepared to build a temporary dam to redirect more water toward the Cernavoda nuclear plant. One of the plant’s two reactors had already been shut, while the facility normally supplies around one-fifth of Romania’s electricity. Hungary’s 2-GW Paks nuclear plant, which usually generates about half of the country’s power, was operating at just over 10% of capacity, with only around 240 MW still available. To reduce pressure on the grid, Dacia and Ford suspended production in Romania until August 19, cutting electricity demand by about 200 MW, while voluntary reductions by Hungarian households and businesses lowered demand by around 700 MW. Reduced nuclear output could increase regional reliance on gas-fired, coal-fired and imported electricity, providing potential indirect support to thermal coal prices. However, the report provided no data showing higher coal-fired generation, coal purchases or coal prices, so it is too early to conclude that coal demand or prices have already increased. The event has no direct impact on coking coal.

Greek shipping company GasLog confirmed that its LNG carrier, GasLog Shanghai, experienced an incident while exiting the Strait of Hormuz on July 31, with the vessel remaining stable and all crew safe, though specific damage to the ship or cargo has not been disclosed. The tanker had previously loaded an LNG cargo at Qatar’s Ras Laffan terminal from July 27–28 before reappearing near Oman’s Musandam Peninsula on August 2. As the Strait of Hormuz handles nearly one-fifth of global LNG transport (including most exports from Qatar and the UAE), heightened geopolitical tensions following the US-Iran conflict have led to multiple vessel attacks and significantly increased transit risks. A prolonged disruption in this key maritime choke point could drive up freight rates, insurance premiums, and spot gas prices, prompting power generators in Europe and Asia to switch from gas to coal, thereby providing indirect support to global thermal coal demand and prices, while leaving coking coal largely unaffected.

India’s coal production reached 69.75 million tonnes in July 2026, up 7.51% year on year, while coal dispatches rose 17.34% to 86.33 million tonnes. The faster growth in dispatches indicates that India not only produced more coal, but also delivered a larger volume to power plants and other downstream users, further strengthening domestic supply. Higher domestic coal supply could theoretically reduce India’s need for imported coal and place some pressure on the seaborne market. However, the report did not provide data on changes in India’s thermal coal imports or any figures related to coking coal. It is therefore too early to determine whether the increase mainly affects thermal coal or coking coal, and there is not yet enough evidence to conclude that India’s coal imports have declined.