This week, the ferrous metals series market followed a similar trend to that of previous weeks. The night session on Wednesday saw a strong upward rally, with finished steel breaking through previous resistance levels and continuing to fill the gap from early April. Prices experienced a correction at the beginning of the week. In the latter half of the week, market rumors emerged about production restrictions ranging from 30% to 50% in the coking industry in the Wuhai region. Additionally, Indonesia planned to impose export tariffs, and there was a second round of coke price increase proposals scheduled for next week. Coking coal and coke continued to lead the gains in the ferrous metals series market. Meanwhile, amid the off-season, the continuous inventory reduction of finished steel provided support for the market...

[SMM Daily Briefing on Coal and Coke] In terms of supply, downstream buyers have been actively procuring, and coke producers have seen good shipments, with coke inventory remaining at a low level. However, coke producers have recently been operating at a loss, with production restrictions in place. Moreover, due to stricter environmental protection measures in the Wuhai region, production restrictions have been intensified. Demand side, steel mill profits have been favorable, with operating rates maintained at a relatively high level. There is a rigid demand for coke from steel mills, and with traders diverting some of the supply, some steel mills are urging for faster deliveries. In summary, the supply of coke has begun to tighten, and cost support remains strong. The coke market may continue to hold up well in the short term, with expectations of further price increases next week.

[SMM Daily Coking Coal and Coke Brief] In terms of supply, the first round of coke price increases has been implemented, but coking coal prices rose earlier and to a greater extent, leaving most coke producers still in a slight loss, leading to a slight reduction in supply. Coupled with smooth shipments from coke producers recently, coke inventory is running at low levels. On the demand side, steel mill profits are good, driving active procurement, and traders diverting supplies have led to some mills experiencing limited arrivals and urging for more deliveries. In summary, the fundamentals of the coke market are performing well, with cost support further strengthened. After the initial price increase, some coke producers still expect prices to rise, and the coke market may continue to hold up well in the short term.

[SMM Steel Morning Meeting Summary: It is expected that the most-traded HRC futures contract will experience sideways movement in the short term] Yesterday, HRC futures and spot prices fluctuated rangebound, with the most-traded contract closing at 3,253, down 0.31%. In the spot market, domestic quotes were mostly stable with a few drops, and overall trading performance was average. In overseas markets, HRC export quotes dropped slightly during the day.

On July 15, Minister of Commerce Wang Wentao and Secretary General of the Australian Department of Foreign Affairs and Trade Don Farrell signed a Memorandum of Understanding on the Implementation and Review of the China-Australia Free Trade Agreement.

[SMM Daily Coke and Coking Coal Briefing] Some steel mills in Hebei and Shandong accepted the first round of coke price hikes of 50-55 yuan/mt, effective from July 17. In terms of supply, the recent coke price hikes are awaiting implementation, and downstream buyers have shown high enthusiasm for purchasing, leading to a continuous pullback in coke inventories at coking enterprises. In terms of demand, hot metal production at steel mills has been fluctuating at highs recently, creating a rigid demand for coke. Additionally, steel mill profits are currently moderate, maintaining stable procurement of coke. In summary, coke costs are well supported, and downstream finished steel demand is recovering. Some steel mills are urging deliveries, and the fundamentals of coke continue to improve. In the short term, the coke market may continue to hold up well.