[SMM Coke and Coking Coal Daily Review] Coking Coal Market: Linfen low-sulphur coking coal is quoted at 2,020 yuan/mt. On the coking coal side, strict safety inspections continue in Shanxi, limiting overall capacity release and keeping the supply tight. Downstream purchasing as needed persists, with some local mines starting to see minor inventory buildup and mounting wait-and-see sentiment. Most mines are executing prior orders, with few new signings, so short-term coking coal prices are likely in the doldrums. Coke Market: The nationwide average price for quasi-first-grade dry-quenched metallurgical coke is 2,090 yuan/mt. Supply side, downstream procurement volume has dropped, with coke inventory at coking plants continuing to increase, pushing current coke supply towards a looser balance. Demand side, heavy rainfall in Northeast and South China is impacting construction, weakening demand for finished steel products; coupled with poor margins, steel mills in Hebei, Shandong, Jiangsu and other regions have concentrated blast furnace production cuts and maintenance. Daily average hot metal production continues to decline, weakening rigid demand for coke. Most mills are now actively controlling coke arrivals and slowing restocking efforts. Overall, the short-term coke market is expected to remain temporarily stable, while expectations of a weaker market are gradually increasing from next week. [SMM Steel]

[SMM Silicon-Based PV Morning Meeting Minutes] Silicon metal: Yesterday, SMM oxygen-blown #553 silicon in east China was near 9,100-9,200 yuan/mt, and #441 silicon was near 9,200-9,300 yuan/mt. The most-traded futures contract consolidated at 8,450-8,500 yuan/mt. The spot-futures price spread of silicon metal strengthened, and coupled with persistently high road freight rates, silicon metal prices in east China stayed relatively firm. Cost support at the bottom for futures prices remains clear, while the upside is capped by the supply-demand relationship, keeping silicon metal prices moving sideways in a narrow range. Wafers: In the market, 18X wafer prices were 0.85-0.87 yuan/piece, 210RN wafers 0.95-0.97 yuan/piece, and 210N wafers 1.15-1.17 yuan/piece. This round, the low end of the range for 210R and 210N wafers edged down by 0.01 yuan/piece, and current prices represent actual trading levels, with overall wafer prices well-supported.

[SMM Coking Coal & Coke Daily Briefing] Coking coal market: Linfen low-sulphur coking coal is quoted at 2,020 yuan/mt. For coking coal, safety inspections in Shanxi continue, with some mines still shut down, leading to slow overall capacity release. Coking coal supply remains tight, and mines have a strong willingness to hold prices firm, keeping mainstream coal prices largely stable for now. However, downstream sentiment is affected by concerns over high prices, and transaction prices for some coal grades in online auctions have been adjusted downward. The market trading atmosphere has weakened, inventories at some coal producers have edged up slightly, and market sentiment is poor. Coke market: The nationwide average price of quasi-first-grade metallurgical coke (dry-quenched) is 2,090 yuan/mt. In terms of supply, coke producers’ profits have recovered to some extent, production is active, and coke supply has edged up slightly. However, downstream buyers purchase as needed, resulting in inventory accumulation at some coke producers. In terms of demand, finished steel prices have weakened, and mills’ margins have narrowed, leading to a gradual increase in mills undergoing production cuts and maintenance. Daily average hot metal output keeps declining, reducing daily coke consumption, and steel mills are cautious in purchasing and restocking. Overall, the tight coke supply situation has eased somewhat. In the short term, the coke market will remain stable, but as maintenance at steel mills gradually increases, rigid demand for coke weakens, and the market has certain expectations of a coke price cut. [SMM Steel]

On July 9, Shenhuo Group announced that it expects net profit attributable to shareholders of the publicly listed firm for the first half of 2026 to be 4.8 billion yuan, up 152.04% YoY. The main reason for the increase in performance was that, during the reporting period, the company's profitability greatly improved due to factors such as the YoY increase in selling prices of aluminum and coal products and the YoY decrease in the price of the key raw material, alumina.

[Cost Squeeze and Overcapacity: 2026 Zinc Oxide H1 Review and Market Outlook] Overall H1 operating run showed a trend of “low-level pullback during Chinese New Year — phased recovery after the holiday — weakening again in the off-season”, with the industry average operating rate in H1 falling 0.11 percentage points YoY.

[SMM Magnesium Market Analysis: Semi Coke Losses Raise Smelting Costs; China’s Magnesium Ingot Comprehensive Cost Rose MoM in June] At the end of May, a safety accident at the Qinyuan coal mine directly tightened the supply of raw coal in the region, rapidly driving up market coal prices. There was a significant time lag in the transmission of semi coke prices, and losses on production at semi coke plants intensified, substantially increasing the energy raw material cost for primary magnesium smelting. Enterprises mitigated fixed expenses such as plant and equipment depreciation by raising capacity, which only slightly alleviated cost pressure. The incremental cost impact from higher energy prices was stronger, pushing up the industry’s overall smelting cost. Processing profits at upstream plants continued to be squeezed, and profit margins narrowed for most enterprises.