In terms of supply, coke producers' profits were moderate, and production remained stable. However, shipments faced certain obstacles, leading to a looser coke supply. Demand side, south China has entered the rainy season, with frequent high-temperature and rainy weather, resulting in a seasonal decline in steel demand. Pig iron production peaked and then pulled back. Additionally, the coke inventory levels at most steel mills were at medium to high levels, weakening the rigid demand for coke. In summary, steel mills had a strong desire to drive down coke prices. The second round of coke price cuts may be implemented on Wednesday, and the coke market is expected to be in the doldrums this week.

On May 26, the Australian Anti-Dumping Commission issued Notice No. 2025/043, stating that in response to an application submitted by Echeng Steel Co., Ltd., a subsidiary of Baowu Group, a Chinese exporter, it had initiated an anti-dumping review investigation into rebar with a diameter of 50 millimeters or less exported to Australia, to examine whether variable factors related to the existing anti-dumping measures should be changed. The dumping investigation period for this case was from April 1, 2024, to March 31, 2025. The Australian Anti-Dumping Commission is expected to complete the basic facts report of this case no later than September 15, 2025, and submit the final determination report to the Australian Minister for Industry and Science no later than October 28, 2025.

SMM Steel News on May 27: According to SMM statistics, the estimated total resource shipments in the mainstream market this week were 278,400 mt, up 70,900 mt WoW from the shipment level last week. By market:

SMM Steel News on May 27: According to SMM statistics, the estimated total resource shipments in the mainstream market this week were 278,400 mt, an increase of 70,900 mt WoW from the shipment level last week. By market:

[SMM Daily Briefing on Coking Coal and Coke] In terms of supply, coking enterprises have moderate profits and stable production, but shipments have faced certain obstacles, leading to a looser coke supply. Demand side, south China has entered the rainy season, with frequent high-temperature and rainy weather, resulting in a seasonal decline in steel demand. Pig iron production has peaked and begun to pull back. Additionally, the coke inventory levels at most steel mills are at a moderately high level, weakening the rigid demand for coke. In summary, steel mills have a strong desire to drive down coke prices. The second round of coke price reductions may be implemented on Wednesday, and the coke market is expected to be in the doldrums this week.

[SMM Weekly Maintenance Statistics] According to SMM statistics, for the week (May 24 to May 30), the impact of blast furnace maintenance on pig iron production was...

The Fourth Batch of the Third Round of Central Ecological and Environmental Protection Inspections Fully Launched Approved by the CPC Central Committee and the State Council, the Fourth Batch of the Third Round of Central Ecological and Environmental Protection Inspections has been fully launched. Eight central ecological and environmental protection inspection teams will carry out inspections in five provinces (autonomous regions), namely Shanxi, Inner Mongolia, Shandong, Shaanxi, and Ningxia, coordinating inspections of the Yellow River Basin and provincial inspections. Meanwhile, they will also conduct inspections on three central state-owned enterprises, namely China Huaneng Group, China Datang Corporation Limited, and SPIC, with an on-site inspection period of approximately one month.

This week, Shandong miners reported a mine-mouth price of RMB 850 (down by RMB 15) for 64-grade alkaline iron ore concentrates on a dry basis, before tax, and with acceptance payment. Steel mills also lowered their prices in tandem. Most miners are operating normally, but overall market transactions remain sluggish. Some mines and beneficiation plants have seen an accumulation of inventory, facing significant pressure to sell. Some steel mills are still undergoing maintenance and maintaining low inventory operations. The proportion of imported ore in their blends is relatively high, and transactions of domestic iron ore concentrates have been weak throughout the week. Looking at this week, influenced by the downward trend in the iron ore futures market, it is expected to have a negative impact on the prices of domestic iron ore concentrates. It is anticipated that iron ore concentrate prices may continue to decline in the later period.

[SMM Daily Briefing on Coking Coal and Coke] In terms of supply, coking enterprises maintained profits and stable production, but shipments faced certain obstacles, leading to a slight inventory buildup. The coke supply tended to be loose. On the demand side, the market gradually entered the off-season, and with frequent high temperatures and rainfall recently, end-use demand from downstream industries weakened. Additionally, as most steel mills held coke inventories at medium to high levels, their enthusiasm for coke procurement diminished. In summary, the supply-demand imbalance in the coke market continued to accumulate, and the impact of the off-season on finished steel products became more pronounced. Some steel mills had already proposed a second round of price cuts for coke. This week, the coke market will be in the doldrums.

Last week, the ferrous metals series fluctuated rangebound, with iron ore continuing to outperform other ferrous metals, while coke prices remained in the doldrums. On the macro front, China's National Bureau of Statistics released macroeconomic data for January-April, revealing that real estate data remained sluggish, with significant YoY declines in steel-related investment and new construction starts. Overseas, the US composite PMI and manufacturing PMI both rebounded, prompting manufacturing enterprises to stockpile inventory in May amid concerns about future supply deficits. In the spot market, futures fluctuations were narrow this week, with market sentiment remaining lukewarm. Meanwhile, the construction materials market was affected by high temperatures and rainy weather, leading to weakened demand. In the short term, according to SMM survey tracking, some blast furnaces have new annual maintenance plans, resulting in a downward trend in pig iron production, though absolute levels remain high, with limited loosening of cost support. For steel, the high-temperature and rainy season is approaching, and construction materials demand is set to slow down. However, manufacturing demand remains resilient, and with profit support, the decline in exports is limited. The inflection point for the five major steel products' inventory has yet to appear. Overall, the fundamental aspects of steel can temporarily maintain a good state, with no immediate risk of a decline in exports. Coupled with moderate cost support, steel prices are expected to fluctuate weakly in the short term based on current levels, with previous support levels unlikely to be effectively breached.