This week, the ferrous metals series exhibited a wave-like trend, with iron ore showing relative strength. The week marked the most intensive period of environmental protection-driven production restrictions for the 93rd military parade, leading to a pullback in hot metal production that weakened the rigid demand for coke. The reduced raw material support, coupled with strengthened transportation controls in some northern regions, caused a pause in demand, resulting in an overall weak performance for the ferrous metals series. Prices of multiple varieties dropped to their lowest levels in nearly one and a half months. In the latter half of the week, production resumptions followed the completion of maintenance in the north, triggering a rebound from low price levels. However, the upside room remained constrained by weak finished product data. On the spot market, end-use procurement demand in the north remained under restrictions this week, leading to rapid inventory accumulation. Meanwhile, some markets in south China saw a release of end-use demand...

[SMM Daily Coking Coal Market Review] Supply side, coke producers maintained moderate profit margins, and with the relaxation of environmental protection-driven production restrictions after the military parade, previously idled coke plants gradually resumed operations, leading to an expected increase in coke supply. Demand side, market sentiment turned cautious, coupled with the gradual recovery of logistics post-parade, which significantly improved steel mills' coke arrivals and dampened their procurement enthusiasm. Overall, the coke market fundamentals are shifting toward looser conditions, with short-term prices likely to remain in the doldrums amid heightened downside risks.

[SMM Daily Coking Coal & Coke Market Review] Supply side, coke producers maintained moderate profit margins, and with the conclusion of the military parade event, environmental protection-driven production restrictions are expected to be lifted, leading to a gradual recovery in coke supply. Demand side, steel prices fluctuated downward, coupled with recent improvements in coke arrivals at steel mills and increased coke inventory at some mills, resulting in a slowdown in procurement pace. Overall, the coke market fundamentals are gradually shifting toward looser conditions. In the short term, the coke market may operate in the doldrums, with rising risks of coke price cuts.

[SMM Daily Coke and Coal Market Review] Supply side, with the military parade concluded, environmental protection-driven production restrictions on coke enterprises in some regions are expected to be lifted. Coupled with favorable profitability, coke supply is anticipated to increase. Additionally, coke shipment pace has slowed down involuntarily, leading to minor inventory accumulation at some coke plants. Demand side, recent weakness in finished steel prices has weakened coke demand. Except for certain restocking demand in the Beijing-Tianjin-Hebei region due to traffic controls, steel mills in other areas have already replenished their coke inventories, resulting in purchasing as needed. Overall, the coke market fundamentals are gradually shifting toward looser conditions, and the short-term market may remain in the doldrums.

SMM Steel September 2: According to SMM statistics, the estimated total shipments of mainstream market resources this week reached 240,100 mt, down 7.37% WoW. By market:  

[SMM Daily Coke Market Review] Supply side, coke producers maintained relatively stable production levels with smooth shipments, though market sentiment remained cautious amid prevalent wait-and-see sentiment. Transportation restrictions in some regions slowed the pace of coke deliveries. Demand side, shrinking steel mill profits, sluggish finished product consumption, and environmental protection-driven production restrictions led to declining hot metal production, weakening rigid coke demand. Overall, sentiment in the ferrous metals series stayed subdued, while the supply-demand imbalance for coke eased slightly. The coke market may remain in the doldrums in the short term.

[SMM Daily Coking Coal and Coke Review] In terms of news, a steel mill in Northwest China initiated a coke price cut of 50-55 yuan/mt, effective from 00:00 on September 4. In terms of supply, with the military parade about to commence, coke producers in Shandong, Henan, and other regions have already implemented production restrictions, leading to tightening supply. Demand side, steel mills around the Beijing-Tianjin-Hebei region have also enforced short-term production restrictions recently, resulting in a pullback in hot metal production and weakened rigid demand for coke. However, some steel mills maintain low coke inventory, prompting certain urgency for deliveries. Overall, with weak supply and demand for coke, coupled with the pullback in futures, bearish sentiment has emerged in the market. The coke market is expected to remain in the doldrums in the short term.

This week, the ferrous metals series exhibited a "V"-shaped trend. On Monday, futures continued to consolidate at high levels amid rumors of a coal mine accident from the previous Friday and Shanghai's property market easing policies. However, some mine-related rumors were debunked, with limited impact on actual production, while the fundamentals of finished steel remained weak, leading to a mid-week pullback in futures from elevated levels. Approaching the weekend, market rumors suggested China would push for steel production cuts in 2025 and 2026, prompting bears to temporarily retreat, though upward pressure on the ferrous complex remained evident. On the spot market, during the transition between peak and off-seasons, end-use demand appeared yet to materialize......

[SMM Daily Coke Market Review] Supply side, with the military parade approaching, coke producers in Hebei, Shandong, and Henan gradually implemented production restrictions, imposing certain constraints on regional supply. However, producers in other regions saw profit recovery and increased production enthusiasm, resulting in only a slight overall reduction in coke supply. Demand side, blast furnace restrictions in Tangshan have begun successively, leading to a temporary decline in steel mills' coke demand. Nevertheless, some mills with low coke inventories remained active in purchases. In summary, both supply and demand for coke weakened, and the short-term coke market is expected to remain stable.

As of August 28, 2025, the national average spot price of HRC stood at 3,329.55 yuan/mt, while the average price of the most-traded HRC futures contract was 3,304.16 yuan/mt. From January to August 2025, HRC prices exhibited a "V-shaped" trend, with the year's low point occurring in June. Compared to 2024, China's average spot HRC price declined by approximately 9% YoY, while the average price of the most-traded futures contract fell by around 10% YoY.