[SMM Coke and Coking Coal Inventory: Coke inventory at coking plants this week was 438,000 mt] Coke inventory at coking plants this week was 438,000 mt, up 23,000 mt or 5.5% MoM. Coke inventory at steel mills was 2.54 million mt, down 47,000 mt or 1.8% MoM. Coke inventory at ports was 1.27 million mt, down 130,000 mt or 9.3% MoM. Coking coal inventory at coking plants was 2.451 million mt, down 77,000 mt or 3.0% MoM.

According to CCTV News, on June 12, Foreign Ministry spokesperson Lin Jian hosted a regular press conference. A reporter asked about the meeting of the China-U.S. Economic and Trade Consultation Mechanism. Lin Jian stated that he would like to emphasize that this meeting was held under the strategic guidance of the heads of state of the two countries. The two sides reached a consensus in principle on the framework of measures to implement the important consensus reached during the phone call between the heads of state of the two countries on June 5 and to consolidate the outcomes of the Geneva economic and trade talks, and made new progress in addressing each other's economic and trade concerns. The Chinese side has always delivered on its promises. Now that a consensus has been reached, both sides should abide by it. It is hoped that the U.S. side will work with the Chinese side to implement the important consensus reached during the phone call between the heads of state of the two countries, give full play to the role of the China-U.S. Economic and Trade Consultation Mechanism, and enhance consensus, reduce misunderstandings, and strengthen cooperation through communication and dialogue.

[SMM Steel Morning Meeting Summary] Yesterday, the steel futures market fluctuated downward, closing at 2,968, down 0.70% from the previous trading day. On the spot side, most market quotes dropped slightly, with declines of 10-20 yuan/mt, and the trading performance throughout the day was mediocre...

Today, the most-traded HRC futures contract hit a peak and then pulled back, with the 2510 contract closing at 3,080 yuan/mt, down 0.87% MoM. Spot prices fell by 10-30 yuan/mt. In terms of supply, HRC production increased by 77,100 mt this week, and supply pressure rebounded rapidly. On the demand side, seasonal characteristics of demand have emerged, with purchasing as needed being the main trend. In terms of raw materials, pig iron output may continue to decline in the short term, and there are still expectations for four rounds of coke price cuts. The cost support for HRC has slightly weakened. Overall, as mentioned yesterday, the favourable macro sentiment brought about by the China-US talks has largely dissipated, and the market has once again returned to the fundamental logic of the off-season. There are still expectations for an increase in HRC supply, while inventory has begun to accumulate in some markets in the north and south. It is expected that HRC prices will be in the doldrums in the short term.

[SMM Daily Coke Market Briefing] In terms of supply, the national environmental protection inspection teams have been stationed in many northern provinces. With some coking enterprises incurring losses and accumulating inventory, they have slightly cut production, leading to a tightening of coke supply. In terms of demand, the finished steel market has entered the off-season. Pig iron output from steel mills has declined, and their coke inventory remains at a medium-to-high level. As a result, there is a lack of restocking demand, and steel mills are mainly purchasing as needed, with some controlling the arrival of goods. In summary, downstream demand is weak. This week, coke prices are expected to remain in the doldrums, and there is an expectation of a fourth round of price cuts next week.

[SMM Steel Morning Meeting Summary] Yesterday, positive signals were released from the macro perspective. The agreement framework reached in principle during the China-US-London business talks boosted market sentiment, leading to an upward oscillation in the futures market. In the spot market, most market quotes increased, with rises of 10-30 yuan/mt. Trading performance throughout the day was average...

On June 10 local time, Li Chenggang, the International Trade Representative and Vice Minister of Commerce, said in London, when referring to the first meeting of the China-U.S. economic and trade consultation mechanism, that China and the United States had conducted professional, rational, in-depth, and candid communications. The two sides reached a framework in principle on implementing the consensus reached during the phone call between the heads of state of the two countries on June 5, as well as the consensus reached during the Geneva talks.

Today, the most-traded HRC futures contract first rose and then fell, with the 2510 contract closing at 3,108 at the end of the session, up 0.77% MoM. Spot prices increased slightly. In terms of supply, the impact from HRC maintenance this week was 172,600 mt, a decrease of 35,800 mt WoW. Next week, the impact from HRC maintenance is expected to be 158,800 mt, a decrease of 13,800 mt WoW, indicating a continued rebound in supply pressure. On the demand side, market sentiment was significantly influenced by the futures market, with slightly better sales at lower prices. Overall, purchasing was mainly as needed. In terms of raw materials, pig iron production may continue to decline in the short term, slightly weakening the cost support for HRC. Overall, the China-US talks may release optimistic signals. However, on the whole, even if the talks are optimistic, their impact on steel will be more about stimulating sentiment, with limited actual effects. Meanwhile, inventory has accumulated in some mainstream cities. In June, HRC may gradually show a pattern of increasing supply and decreasing demand. After the sentiment-driven rally fades, it is expected that HRC prices will peak and pull back in the short term. It is recommended to focus on selling at highs.

[SMM Daily Commentary on Coking Coal and Coke] In terms of supply, some coke enterprises have slightly reduced production due to losses and inventory pressure. However, most coke enterprises have seen profit recovery, and production remains stable for the time being. On the demand side, steel mills' coke inventory is at a medium-to-high level. Moreover, the finished steel market is significantly affected by the off-season, and steel mills maintain a cautious procurement attitude, controlling the arrival of goods. In summary, the cost support for coke has further loosened, and downstream demand has weakened. In the short term, coke prices may continue to face downward pressure.

[SMM Steel Morning Meeting Summary] Yesterday, the steel futures market continued to oscillate, with significant fluctuations during the session due to the impact of negotiation expectations. It eventually closed at 2974, down 0.07% from the previous trading day. On the spot cargo side, the market showed mixed performance, with fluctuations ranging from 10-30 yuan/mt. Trading activity was weak throughout the day. ......