The second round of coke price cuts has been implemented. The coke procurement prices of large steel mills in Hebei have been reduced, with a decrease of 50 yuan/mt for wet quenched coke and 55 yuan/mt for coke dry quenching. The specific situation after adjustment is as follows: Grade 1 wet quenched coke (A≤12.5, S≤0.7, CSR≥65, MT≤7) is priced at 1,410 yuan/mt; Grade 1 coke dry quenching (A≤12.5, S≤0.7, CSR≥65, MT≤0) is priced at 1,625 yuan/mt. The above prices are tax-inclusive, delivered to the mill and payable upon acceptance, effective from 0:00 on May 28, 2025.

Today, rebar futures fluctuated downward, closing at 2964, down 0.77% from the previous trading day. In terms of spot prices, spot quotes in most regions remained stable, with only a few regions experiencing a decline of around 10-20 yuan/mt. Trading volume throughout the day improved slightly compared to yesterday, mainly driven by low-priced resources. From a fundamental perspective, on the supply side, according to the SMM survey, due to the significant decline in finished steel prices in recent days, the economic benefits of electric furnace mills decreased on a WoW basis, prompting several steel mills to reduce their operating hours. However, as one electric furnace mill resumed production as planned, the national electric furnace operating rate this week reached 39.14%, up 0.68% WoW. Blast furnace steel mills, with still existing profit margins, maintained strong production enthusiasm, and the overall supply pressure remained high. On the demand side, the demand for construction materials is currently in the transition phase between the "off-season and peak season," showing insufficient resilience, with market purchases primarily driven by rigid demand. Overall, the current supply-demand imbalance is intensifying, and market sentiment is unlikely to improve. It is expected that spot prices of construction materials will consolidate in the short term.

[SMM Daily Review of Coking Coal and Coke] In terms of supply, after the second round of coke price cuts, most coking enterprises incurred losses, but these were still within an acceptable range. Production remained temporarily stable, and coke supply was relatively loose. On the buyer side, there was a seasonal decline in steel demand. Pig iron production peaked and then pulled back. The policy of reducing crude steel output had not yet been implemented, making it difficult to offset the impact of the weak reality. Additionally, the coke inventory levels at most steel mills were at medium to high levels, weakening the rigid demand for coke. In summary, after the second round of coke price cuts, the market still had bearish sentiment, and the coke market would operate in the doldrums in the short term.

Coal mines are generally operating normally, with production cuts at individual coal mining enterprises failing to alter the loose supply situation of raw materials.

[SMM Hot Topic: Summary of Q1 Reports from 44 Steel Enterprises: Nearly 70% Achieved YoY Net Profit Growth] In Q1, the supply-demand imbalance in China's domestic steel market remained prominent. According to data from the National Bureau of Statistics (NBS), in Q1 2025, China's crude steel production reached 259 million mt, up 0.6% YoY. The domestic steel price index in Q1 decreased by 9.9% YoY, while the Platts 62% iron ore index increased by 1.0% YoY, and the price of coking coal in Lvliang, Shanxi, decreased by 36.1% YoY. Although the cost of raw materials and fuels for steel enterprises improved somewhat, the profit margins in the steel industry remained limited due to weak demand in the steel market, and operational pressures persisted.

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.