This week, the ferrous metals series saw a high-level correction. At the beginning of the week, the market was abuzz with news that blast furnaces in Tangshan would be subject to 40% production restrictions by capacity at the end of August, leading to a pullback in raw material prices. Although a decline in production is beneficial for finished products, the collapse of cost support pushed these products to their lowest levels in nearly a month. In the latter half of the week, rumors circulated about stricter enforcement of order inspections, and actions were already being taken at southern ports, resulting in a more pronounced drop in HRC compared to rebar, narrowing the spread between the two. In the spot market, when the spot-futures price spread narrowed, there was still speculative demand for long positions, but the hot and rainy weather suppressed the recovery of end-use demand...

This week, the ferrous metals series continued its trend of rising first and then falling. In the first half of the week, news about safety inspections and production restrictions of coking coal and coke led to a sharp increase in coking coal and coke prices, driving a rebound in the ferrous metals series from low levels. In the second half of the week, the market's expectation that new coal mine safety regulations would lead to the closure of small and medium-sized coal mines did not materialize. Coupled with an increase in transaction fees and the expectation that the Dalian Commodity Exchange (DCE) would cool down the coking coal market, the follow-up market trend ended, and the futures market experienced a deep correction. In the spot market, transactions were moderate in the first half of the week, but most were driven by speculative demand for calendar spreads, while end-user demand remained in the off-season...

This week, the total inventory of rebar was 5.5104 million mt, increasing by 276,200 mt WoW, with a WoW growth rate of 5.28% (previous value: +1.97%). Compared to the same period of the lunar calendar last year, it decreased by 550,200 mt, with a decrease rate of 9.08% (previous value: -18.51%).

The planned rebar production for August was 8.776 million mt, an increase of 114,700 mt compared to the actual production in July, representing a growth rate of 1.32%; The planned wire rod production for August was 3.4541 million mt, a decrease of 65,700 mt compared to the actual production in July, representing a decline rate of 1.87%.

This week, the ferrous metals series rebounded from a low position but then saw some pullback. In the first half of the week, the main driving force for the market rally was coking coal. The further advancement of coal capacity verification led to a rise in coking coal futures, driving an overall rebound in the ferrous metals series. Market sentiment reached a new high amid rumors of production restrictions during the military parade and crude steel output reduction. In the second half of the week, the rumors cooled down, coupled with poor performance in supply and demand data for finished steel products, futures began to pull back. In the spot market, trading was moderate in the first half of the week, but mostly driven by speculative demand for calendar spreads. The performance of end-users remained generally lackluster...

According to the SMM survey, the impact from maintenance on construction steel this week (8.2-8.8) slightly declined, as some steel mills resumed production after completing maintenance last week. The maintenance impact on rolling lines this week was 1.2764 million mt, down 8,000 mt WoW.

This week, the ferrous metals series first rose then fell, with some varieties reaching half-year highs before experiencing significant declines. On the news front, Tuesday saw market sentiment peak as expectations for the upcoming Politburo meeting combined with potential production cut expectations in September due to military parade supply constraints, driving stronger gains in finished products than raw materials. Later in the week, the Politburo meeting concluded without exceeding expectations regarding real estate or anti-"rat race" competition measures, prompting increased exits by bulls. Fundamentally, the third and fourth rounds of coke price increases materialized this week, while finished product inventories began accumulating. Spot market-wise, recent trading activity declined, with arbitrage demand still entering early in the week but transactions plummeting later...

This week, the ferrous metals series continued the upward trend from the night session last Friday, all reaching highs in recent months. On the news front, at the beginning of the week, it was reported that "the General Office of the National Energy Administration issued a notice on organizing and conducting inspections of coal mine production to promote stable and orderly coal supply." On Friday, a 4.2 magnitude earthquake struck Linfen, Shanxi, causing repeated fluctuations in market sentiment in the coking coal market, with multiple trading limits being hit during the week, driving the ferrous metals series to rise strongly. The price trend of iron ore was slightly weaker than that of other varieties. On the fundamental side, the second and third rounds of coke price increases were implemented this week, and the fourth and fifth rounds were also being planned. Meanwhile, the inventory performance of finished steel products was moderate. In the spot market, the recent market transaction atmosphere has been good, but it has mainly been driven by calendar spread speculation demand, with end-use demand still primarily based on purchasing as needed...