This week, the total inventory of construction steel continued to decline. Specifically, the total rebar inventory decreased by 1.82% WoW, while the total wire rod inventory increased by 0.68% WoW. On the supply side, the operating rates of both BF and EAF steel mills declined this week. Currently, due to reduced profitability, some steel mills in Shaanxi have halted production for maintenance, leading to a decrease in pig iron production. The production situation of EAF steel mills varied. One electric furnace plant in east China resumed production, while in the southwest region, due to electricity subsidies, market profitability improved, prompting some electric furnace plants to extend their operating hours.

[SMM Daily Commentary on Coking Coal and Coke] In terms of supply, coking enterprises maintained a relatively high operating rate, with some accumulating inventory and actively shipping products, but their sentiment remained weak. On the demand side, steel mills maintained normal production, with their coke inventory within a reasonable range. Coupled with the off-season in the market leading to average steel sales, some steel mills controlled the rhythm of coke arrivals and had a strong desire to bargain down prices. Overall, the fundamentals of the coke market remained relatively loose, with some steel mills already proposing a third round of price cuts. In the short term, the coke market will be in the doldrums.

The US White House issued a statement saying that President Trump had signed an order to raise tariffs on imported steel, aluminum, and their derivative products from 25% to 50%, effective from 00:01 a.m. on the 4th, Eastern Time. The statement indicated that tariffs on steel and aluminum imported from the UK would remain at 25%.

[SMM Daily Review of Coking Coal and Coke] In terms of supply, the profitability of most coking enterprises has improved, and their production enthusiasm is moderate, with the actual supply remaining relatively loose. On the demand side, affected by the traditional off-season, steel mills are facing increased inventory pressure on finished products, and pig iron production continues to decline, resulting in reduced rigid demand for coke. In summary, the fundamentals of coke are bearish. However, driven by market sentiment in the futures market, market confidence has increased. This week, coke prices may remain in the doldrums.

China's Caixin Manufacturing PMI for May came in at 48.3, falling below the threshold for the first time since October 2024. The forecast was 50.7, and the previous reading was 50.4.

[SMM Weekly Maintenance Statistics] According to SMM statistics, this week (from May 31 to June 6), the impact of blast furnace maintenance on pig iron production was...

SMM Steel, June 3 - According to SMM statistics, the estimated total shipments of mainstream market resources this week were 235,400 mt, a decrease of 42,000 mt WoW. By market:

SMM Steel News on June 3: According to SMM statistics, the estimated total resource shipments in the mainstream market this week were 235,400 mt, a decrease of 42,000 mt WoW from the shipment level. By market:

[SMM Daily Review of Coking Coal and Coke] In terms of supply, benefiting from the decline in coking coal prices, the profitability of most coking enterprises has improved, and their enthusiasm for coke production remains moderate, with actual supply still leaning towards being loose. Demand side, affected by the traditional off-season, steel mills are facing increased inventory pressure on finished products, and there is still a desire to bargain down coke prices, with purchasing as needed being the main approach. In summary, the short-term coke market is in the doldrums, with a widespread bearish sentiment in the market, and there is still an expectation for a third round of coke price reductions.

According to CME's "FedWatch Tool": The probability that the US Fed will maintain interest rates unchanged in May is 96.3%, and the probability of a 25-basis-point interest rate cut is 3.7%. The probability that the US Fed will maintain interest rates unchanged by June is 22.1%, the cumulative probability of a 25-basis-point interest rate cut is 75.0%, and the cumulative probability of a 50-basis-point interest rate cut is 2.8%.