[SMM Coal and Coke Daily Briefing] News-wise, mainstream steel mills in Hebei and Shandong accepted the coke price increase, and the second round of coke price hikes was implemented, with an increase of 50-55 yuan/mt. In terms of supply, after the second round of price hikes, coke producers' profits improved, the scope of production cuts did not expand, operations were maintained at previous levels, shipments were smooth, and there was no inventory pressure. Demand side, steel inventory destocking was not ideal, and blast furnace maintenance due to environmental protection increased, hot metal production continued to pull back this week, rigid demand for coke weakened, but steel mill coke inventory still declined slightly, coupled with coke supply contraction, steel mills were relatively active in procurement. In summary, the coke market may hold up well in the short term, generally stable with a slight rise.

According to the SMM survey, the SMM Ningbo HRC broad-caliber inventory stood at 397,000 mt as of 10.22, down 13,000 mt WoW.HRC prices edged up this week, with the spot price rising 10-40 yuan/mt WoW. Trading activity in the market improved during the week. As of the afternoon close on 10.24, the most-traded HRC 2601 futures contract settled at 3,250 yuan/mt.

This week, ferrous metals first stabilized and then rose, with divergent trends among different varieties. Coking coal and coke continued to show the strongest performance, while rebar and iron ore were relatively weak. At the beginning of the week, stricter environmental and safety inspections in the Wuhai area of Inner Mongolia, coupled with intensified crackdowns on overproduction, led to production halts and cuts at some coal mines, pushing coking coal and coke prices upward. However, finished products struggled to keep up with the gains. In the latter half of the week, inventory data for the five major steel products showed continued destocking on a weekly basis, easing market concerns about inventory reduction. With the macro conference expected to conclude soon, market sentiment peaked on Thursday but cooled again as the weekend approached. In the spot market, as the September-October peak season drew to a close, end-users mainly purchased as needed, making it difficult to see large-scale concentrated procurement released...

[SMM Daily Coal and Coke Briefing] In terms of news, steel mills in Tangshan, Tianjin, and other regions have accepted the second round of coke price increases of 50-55 yuan/mt. Supply side, coke producers' profits have further decreased, with some implementing production cuts. Overall operating rates are stable with a slight decline, but shipments remain smooth, and overall inventory is at a low level. Demand side, daily average hot metal production remains at a relatively high level, and blast furnace operations at steel mills are stable, maintaining rigid demand for coke. However, steel mill profits are under pressure, maintenance activities have increased, and most mills continue to adopt a purchasing-as-needed strategy. In summary, market bullish sentiment is growing, and the coke market may hold up well in the short term.

[SMM Daily Coal and Coke Briefing] In terms of news, there are rumors that the second round of coke price increases is preliminarily expected to be agreed upon on Friday and implemented next Monday (October 27). Supply side, coke enterprise profits have further decreased, with some enterprises implementing production cuts, leading to an overall stable yet slightly declining operating rate. Demand side, daily average hot metal production remains at a relatively high level, and stable blast furnace operations at steel mills provide rigid support for coke demand. However, steel mill profits are under pressure, maintenance activities have increased, and most steel mills maintain a purchasing-as-needed strategy. In summary, coke and steel enterprises continue to negotiate, and the coke market may hold up well in the short term.

In summary, some mainstream resources plan to shift shipments to east China due to price spreads. Meanwhile, the market has learned that YFDH may plan to reduce its production load. Subsequently, supply in Lecong is expected to decrease slightly, but overall remains high compared to previous years, while demand is feared to weaken over time. Therefore, according to SMM predictions, a smooth destocking path for Lecong hot-rolled coil remains distant, and inventory may hover at these high levels in the short term. *This report is an original and/or compiled work of SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"). SMM legally owns the copyright and is protected by laws and regulations such as the Copyright Law of the People's Republic of China, as well as applicable international treaties. Without written permission, it shall not be reproduced, modified, sold, transferred, displayed, translated, compiled, disseminated, or disclosed to any third party or licensed for use by any third party in any other form. Otherwise, once discovered, SMM will pursue legal action against the infringing party, including but not limited to demanding liability for breach of contract, restitution of unjust enrichment, and compensation for direct and indirect economic losses.

[SMM Coal and Coke Daily Briefing] Supply side, coke producers maintained stable operations with active shipments, keeping coke inventories at low levels. However, declining profit per metric ton of coke has led some producers to voluntarily cut production. Demand side, transportation disruptions at some steel mills in Tangshan have hampered coke deliveries. While daily average hot metal output remains at a relatively high level, sustaining rigid coke demand, finished steel inventory continues to face pressure amid weaker steel prices. Steel mills have shown resistance to the coke price hike. Overall, the coke market is expected to hold up well in the short term, generally stable with a slight rise.

SMM Steel, September 30 – According to SMM statistics, the estimated total shipments in mainstream markets this week were 185,700 mt, down 21.88% WoW

[SMM Coal and Coke Daily Briefing] In terms of news, steel mills have yet to respond to the second round of coke price increases. In terms of supply, coke enterprises are experiencing smooth shipments, with coke inventory remaining at low levels. However, some coke enterprises are operating at a loss and have implemented production cuts, leading to a tightening of coke supply. On the demand side, steel mills are currently maintaining high hot metal production, resulting in high daily coke consumption. Steel mills with low inventory still have some restocking demand. However, finished steel consumption remains weak, and steel mill profits have narrowed, leading to a cautious approach where purchasing is mainly conducted as needed. In summary, coke and steel enterprises have entered a period of stalemate. It is expected that the coke market may operate in a generally stable manner with a slight upward bias in the short term.