Chapter 1: The Energy Crisis Reshapes Coking Coal Value In 2026, with the Russia-Ukraine war still ongoing and the U.S.-Iran war reigniting, crude oil price centers continued to shift upward. Coupled with persistent geopolitical conflicts in other regions worldwide, energy security demand climbed, driving a systematic revaluation of coking coal value. Moreover, against the backdrop of high oil prices, the cost advantages of coal-based chemicals over oil-based chemicals began to emerge, improving the economics of coal-to-oil substitution and expanding coking coal demand. Coking coal possesses the dual attributes of industrial raw material and energy commodity, supported by both rigid demand and high elasticity to energy prices, with premium capacity far exceeding that of ordinary industrial products. Market perception underwent a fundamental shift, as coking coal gradually shed its subordinate positioning within the steel industry chain and was upgraded to a scarce strategic energy asset. The energy crisis restructured its valuation logic. Pricing broke free from the singular steel supply-demand framework and was incorporated into the global energy price comparison system. Energy and security premiums elevated the valuation center, making it an important target for hedging geopolitical risks and allocating strategic resources. Chapter 2: Global Coking Coal Market Landscape (1) Global Coking Coal Resource Distribution Data source: publicly available data Global coking coal resources account for 13% of total global coal resources, approximately 1,140 billion mt. About 49% are distributed in Europe, 29% in Asia, and 19% in North America. The economically recoverable reserves of coking coal are approximately 500 billion mt, of which high-quality coking coal with low ash and low sulfur content amounts to only about 60 billion mt. Economically recoverable coking coal resources are primarily concentrated in three countries: Russia (42%, approximately 210 billion mt), China (23%, approximately 115 billion mt), and the US (18%, approximately 90 billion mt), with other countries accounting for relatively small shares. (II) Global Coking Coal Production Distribution Data source: publicly available data Global coking coal production in 2025 was approximately 1.1 billion mt, with a highly concentrated production landscape. China ranked first at 514 million mt, accounting for 47% of global production and serving as the core supply pillar, though virtually all output was consumed domestically. Australia (172 million mt) and Russia (98 million mt) ranked second and third, followed closely by the US (59 million mt), Mongolia (54 million mt), and Canada (32 million mt), while India produced 25 million mt and Indonesia produced 11 million mt. These eight countries collectively accounted for 88% of global coking coal production. Data source: World Steel Association, IEA Major producing countries: China firmly held the top global position with absolute volumes rising from 480 million mt (2020) to 514 million mt (2025), achieving the highest global increase of 34 million mt, primarily driven by new domestic mine commissioning and supply security policies. Russia and Mongolia became key growth contributors with increases of 12 million mt and 23 million mt respectively — the former benefiting from post-sanction market redirection and new mine development, while the latter achieved substantial production increases through upgraded border customs clearance with China and railway cost reductions. Australia's capacity remained basically flat. EU countries (Germany, Poland) and Ukraine continued to cut production due to factors such as coal phase-out policies, aging mines, and geopolitical conflicts, while the US, India, Mozambique and other countries achieved capacity growth driven by export demand and downstream industry boost. (III) Analysis of Global Coking Coal Export Trade Data source: publicly available data Global coking coal export trade is highly concentrated in five countries—Australia, Russia, Mongolia, the US, and Indonesia—primarily for the following reasons: Monopolistic resource endowment: Russia accounts for 42% of the world's recoverable coking coal reserves, and the US accounts for 18%. Australia possesses globally scarce high-quality coking coal resources with low ash and low sulfur content. Mongolia and Indonesia also have distinctive coal varieties suited to blending needs. These resource barriers create a supply-side monopoly. Locational and logistics cost advantages: Australia's coking coal producing regions are adjacent to east coast ports, enabling low-cost seaborne access to the world's core steel-producing regions. Mongolia's mining areas border China, with overland logistics providing direct access to the Chinese market. Russia, the US, and Indonesia leverage mature seaborne and cross-border railway networks to achieve efficient coverage of global demand markets. Industrial structure and supply-demand mismatch: Although China holds 23% of the world's coking coal reserves, as the world's largest steel producer, China has extremely rigid coking coal consumption demand, making it the world's largest coking coal importer. In contrast, the five countries mentioned above have limited domestic consumption and surplus coking coal supply. Their industrial structures are centered on resource exports, providing a supply foundation for large-scale exports. Coal quality and global demand matching: The coal varieties from these countries form a complementary supply system. Australian coal is suited to high-end coke demand, Mongolian coal serves as a premium blending raw material, Russian coal covers the full range of varieties, and US and Indonesian coal meet the blending needs of different steelmaking processes. This precisely matches the rigid blending needs of global steel enterprises, forming a stable export pattern. Chapter 3: China's Coking Coal Market (1) Current Supply and Demand of Coking Coal in China Data sources: National Bureau of Statistics (NBS), General Administration of Customs of China, publicly available data Supply side, China's coking coal concentrate production grew steadily, rising gradually from 480 million mt in 2020 to 514 million mt in 2025, with overall supply scale remaining stable and no wild swings observed. Import and export side, imports became the core variable supplementing China's domestic supply: imports briefly declined 24% YoY to 54.768 million mt in 2021, then entered a sustained expansion trajectory, with 2025 imports surging 117% from 2021 to 118 million mt; exports remained at low levels over the long term, once plunging 89% YoY to 92,000 mt in 2021, then gradually rebounding, but the 2025 export volume of 1.175 million mt had minimal impact on the overall market. Demand side, coking coal concentrate demand also maintained mild growth, with 2025 demand reaching 628 million mt, a modest increase from 2020. Demand growth was primarily supported by the concurrent expansion of coke production (coke production reached 502 million mt in 2025). Overall, China's domestic coking coal production growth was unable to fully match demand expansion, with imported resources effectively filling the supply-demand gap. (II) China's Coking Coal Supply-Demand Balance Data source: National Bureau of Statistics (NBS), publicly available data From 2020 to 2025, China's coking coal concentrate market completed a transition from tight supply to a tight balance with a slight surplus, with both supply and demand expanding simultaneously and market operational stability improving significantly. The supply side exhibited a sustained and steady growth trend, with the release of domestic capacity combined with supplementary import resources jointly driving continuous enhancement of supply capability. The demand side maintained mild expansion, primarily supported by rigid production demand from the coke and steel industries, with overall growth notably slower than the supply side. By phase, from 2020 to 2022, the market was in a state of persistent undersupply, with supply gaps appearing in all three years, and the industry was highly reliant on imported resources to fill the supply-demand gap. In 2023, the market reached a structural turning point, achieving a supply surplus for the first time; in 2024, the surplus scale expanded significantly; in 2025, the surplus pulled back, but the market had thoroughly shed its prolonged deficit status. With China's coking coal concentrate supply assurance capability continuing to improve, combined with flexible adjustment of import channels, the market entered a healthy tight balance range where supply was slightly greater than demand. Chapter 4: Global Coking Coal Supply-Demand Balance Data source: IEA, publicly available data From 2020 to 2025, the global coking coal market gradually shifted from maintaining a slight surplus to a slight supply-demand deficit. The long-term tightening of global premium coking coal resources, compounded by multiple external factors such as the restructuring of the global energy landscape triggered by the energy crisis and shifts in national energy policies, ultimately drove the global coking coal market from a relatively loose state in the earlier period to a slight deficit. Chapter 5: Summary Affected by geopolitical conflicts and energy transition, the strategic value of coking coal continued to rise, with energy security premiums becoming prominent, and the overall industry landscape gradually evolving toward a tight supply-demand balance. Global coking coal production is limited, with low-ash, low-sulfur premium resources being particularly scarce. Reserves, capacity, and export trade are all highly concentrated, with a few countries such as Russia, China, the U.S., and Australia controlling the supply side, forming a monopolistic landscape through advantages in resources, logistics, and coal grade complementarity, while the energy crisis brings new opportunities and challenges. Overall, coking coal markets both in and outside China have shifted toward a tight balance, with structural shortages of premium coal grades being a prominent issue. The coking coal market may hold up well throughout 2026.

[Brief Comment on China's Iron Ore Market] In Shandong, mine-mouth price of 64% grade alkaline concentrate (dry basis, pre-tax) was quoted at 880, down 29. Steel mills lowered prices in tandem and slowed their purchasing pace, leading to a slight inventory buildup at mines. Shipments from small plants and traders also slowed, with overall transactions remaining sluggish. Over the weekend, a particularly severe accident occurred at a coal mine in Shanxi, but it had no significant impact on local mines and beneficiation plants in Shandong.

Against the backdrop of accelerating global energy transition and digital economy development, silver—a strategic metal possessing both industrial and financial attributes—is witnessing profound transformation across its industry chain. On one hand, demand for silver from emerging sectors such as PV, NEVs, and 5G communications continues to climb, driving the industry toward higher value-added and greener upgrades; on the other hand, resource constraints, technological barriers, and market fluctuations impose higher requirements on industry chain resilience, urgently calling for innovation-driven coordinated development across the entire chain. Dual Drivers of Policy and Market Under China's "dual carbon" goals and the global ESG investment wave, the silver industry faces pressing demands for green production, recycling, and low-carbon technologies. The NDRC's "14th Five-Year Plan for Circular Economy Development" explicitly calls for strengthening the recycling of precious metal resources, while international silver price fluctuations and geopolitical risks are compelling enterprises to enhance supply chain autonomy and controllability. Against this backdrop, the Silver Industry Chain Innovation Conference emerged, aiming to build a collaborative platform integrating government, industry, academia, research, and end-use applications, to address industry pain points, and to lead the industry toward high-end, intelligent, and internationalized development. Innovation Demands and Industry Pain Points Technological Breakthroughs: Silver purification processes, nano-silver material applications, and scrap recycling technologies urgently need breakthroughs to meet the demand for high-purity, low-cost silver in emerging fields such as PV silver paste and flexible electronics. Industry Chain Coordination: Information barriers exist across mining, smelting and processing, and end-use applications, requiring digital tools to achieve optimized resource allocation and risk sharing. Green Transformation: Traditional smelting processes are energy-intensive and highly polluting, necessitating the promotion of clean production technologies and circular economy models in response to global carbon neutrality commitments. Market Expansion: Silver's application potential in frontier fields such as hydrogen energy and quantum computing has not been fully explored, requiring strengthened cross-industry cooperation and standard-setting. Conference Objectives and Value Themed "Silver Chain Innovation · Intelligent Creation for the Future," this conference brings together global silver industry chain leaders, research institutions, financial institutions, and policymakers for in-depth dialogue around three core topics: technological R&D, supply chain optimization, and market expansion. Through releasing industry white papers, establishing innovation alliances, and signing major projects, the conference aims to drive the silver industry's transformation from "resource dependence" to "technology leadership," providing critical material support for the global energy revolution and digital economy. Shanxi Jinwu Energy Co., Ltd. will attend this grand event, joining industry peers to discuss industry development trends and work together to propel the silver industry to new heights. Click to register now. Join us to witness and participate in this remarkable and far-reaching industry event, and together create a brilliant new chapter! Shanxi Jinwu Energy Co., Ltd. is a production-oriented enterprise integrating R&D, production, sales, and services, with an annual production capacity of 200kt of high-end foundry briquette coal (briquette coke) and 200kt of carbon products (carburizers). Located in Huayu Town, Jishan County, Shanxi Province, the company was established in October 2005, with a registered capital of 68 million yuan, covering an area of over 300 mu, and employing more than 500 people. Over the years, the company has adhered to the mission and business philosophy of "Products reflect character, quality is life, aligning with the world, and creating international brands." The company has obtained 6 national invention patents and 31 utility model patents, passed the ISO triple management system certification, and is recognized as a Shanxi Province high-tech new-type enterprise, a "Single Champion in High-end Foundry Briquette Coal" enterprise, and a national-level specialized, refined, distinctive, and innovative "Little Giant" enterprise. Foundry briquette coal (briquette coke) was an encouraged project under the national " 12th Five-Year Plan" and "13th Five-Year Plan. " This technology was a domestic first and world-leading innovation, fully aligned with the "Six New " strategy proposed by the state, and is a typical representative of carbon-based new materials. After more than a decade of dedicated R&D, the company broke through technical bottlenecks and successfully developed the environmentally friendly Ash-8 and Ash-10-series "Jinwu" brand high-end foundry briquette coal (briquette coke), produced with anthracite as the primary raw material . This product features high fixed carbon, high strength, high calorific value, excellent hot metal carburizing effect, and high coke reactivity strength. The products have long been leading both international and Chinese markets. Internationally, the products are exported to Germany, Japan, South Korea, and other countries, and the company is a long-term supplier to world-renowned enterprises such as Toyota and Hyundai. Domestic sales cover 18 provinces and cities, and the company is a strategic partner of well-known enterprises including Meide Group, LONGi Group, Binglun Group, and Sanhuan Group. "Jinwu" brand foundry briquette coal (briquette coke) has become an essential raw material for high-end equipment manufacturing and was awarded the honorary title of "Quality Foundry Material" by the China Foundry Association. "Jinwu " brand carburizer is produced using high-quality anthracite and petroleum coke as the primary raw materials. Carburizers can be used in steel mills and foundries to adjust the carbon and oxygen content of molten steel, modifying its rigidity and toughness, thereby enhancing the nucleation capability of molten steel and the intrinsic quality of steel billets. It is an indispensable auxiliary additive for producing high-quality steel and castings. The products have long been leading both international and Chinese markets. Internationally, products are exported to Japan, South Korea, and various Southeast Asian countries; domestically, the sales network covers more than 20 provinces and cities, with partner steel enterprises including Zhejiang Tsingshan Steel, Jiangsu Binxin Steel, Xuzhou Steel, Jinnan Steel, and other well-known steel enterprises. Contact Information 15582980888 15333598563 Long press to scan the code and register now 2026 SMM (7th) Silver Industry Chain Innovation Conference

[SMM Coking Coal and Coke Daily Brief] In terms of supply, coking enterprises maintained moderate operating enthusiasm with good shipments, and coking enterprises continued to maintain low inventory levels. Demand side, downstream steel mills' blast furnace daily average hot metal production fluctuated at highs, resulting in high daily coke consumption. Some steel mills saw a declining trend in coke inventory and had restocking demand. However, recent continuous pullbacks in finished steel prices weakened steel mill profitability, suppressing steel mills' enthusiasm to purchase. In summary, coke and steel enterprises were in a standoff phase, and the coke market may remain stable in the short term.

On May 18, the Ministry of Industry and Information Technology released the "Implementation Measures for Capacity Replacement in the Steel Industry" (hereinafter referred to as the "Replacement Measures"). SMM conducted a comparative review and analysis of the relevant content...

[SMM Global Steel Enterprise Special Report] A Detailed Analysis of US "Steel King" Nucor: 100% Electric Arc Furnace Forging High Profits, Vertical Integration Mitigating Cost Fluctuations Nucor Corporation is a company incorporated in Delaware in 1958. The company and its subsidiaries are engaged in the manufacture of steel and steel products. It also produces and procures ferrous and non-ferrous metal materials, primarily for use in its steelmaking operations. Most of its operating facilities and clients are located in North America. Its operations include international trading and sales companies responsible for buying and selling steel and steel products manufactured by the company and others. Nucor is also the largest recycler in North America, using steel scrap as the primary raw material for producing steel and steel products. In 2025, it recycled approximately 20 million gross tons of steel scrap. Operating Performance Data source: Nucor Corporation Annual Report、SMM Reasons behind the performance changes: ① Decline in gross profit: The primary reason for the decline in gross profit in 2025 was the compression of profit margins in the steel products segment. Due to lower average selling prices, gross profits from the grating and decking, building systems, and rebar fabrication businesses under this segment all experienced significant declines. ② Steel mill segment growth: In contrast, gross profit in the steel mill segment increased, primarily driven by higher sales and improved steel industry spreads. ③ Investment expenditures: Over the past three years, Nucor invested approximately $9.73 billion in capital expenditures and acquisitions, aiming to expand its product portfolio and enhance operational flexibility. Segments, Major Products, and Marketing Nucor reports its results in three segments: the steel mills segment, the steel products segment, and the raw materials segment. The steel mills segment is Nucor's largest segment, accounting for 62% of the company's sales to external clients for the fiscal year ended 2025. It primarily sells its products to steel service centers, manufacturers, and fabricating enterprises located in the US, Canada, and Mexico. In 2025, the steel mills segment sold approximately 19,848 kt of products to external clients. Data source: Nucor Corporation Annual Report、SMM The Steel Products segment primarily produces high-value-added downstream construction and industrial components, holding leading positions across the U.S. in multiple sub-segments including steel joists, prefabricated metal buildings, and insulated metal panels. It accounted for 29% of the Company's net sales to external clients for the year ended 2025. In 2025, total sales of major products in the Steel Products segment were approximately 1.478 million mt, including approximately 658,000 mt of steel joists and joist girders, approximately 436,000 mt of steel deck, and approximately 384,000 mt of metal building systems. Although physical sales volume (tonnage) was far below that of the Steel Mills segment, the per-mt selling price and profit margin were much higher than those of basic steel, and the segment also ranked first in market share across the U.S. in multiple areas. Data source: Nucor Corporation Annual Report、SMM The Raw Materials segment is the cornerstone of Nucor's vertical integration strategy, primarily operated through its wholly-owned subsidiary The David J. Joseph Company (DJJ), and manages DRI production facilities in Louisiana and Trinidad. By blending DRI with steel scrap, it supports electric arc furnace (EAF) production of higher-grade sheets & plates while ensuring cost advantages and supply security of raw materials. It accounted for 9% of the Company's net sales to external clients for the year ended 2025. In 2025, approximately 20 million gross tons of steel scrap were recycled and processed. Data source: Nucor Corporation Annual Report、SMM Clients and Markets Data source: Nucor Corporation Annual Report、SMM Major Development Projects in Recent Years The vast majority (91%) of Nucor's capital was allocated to internal construction (CapEx), strengthening core competitiveness through technology upgrades (such as electric arc furnaces and micro mills); a small portion was used for strategic acquisitions to achieve "outward expansion" into high-margin downstream areas. Through acquisitions such as SWDP, the company quickly entered high-barrier, high-growth sub-segments including data centers and green energy, making its business structure more resilient to cyclical downturns. Data source: Nucor Corporation Annual Report、SMM Core Logic of Vertical Integration for Cost Reduction: Raw Material Supply Structure Data source: Nucor Corporation Annual Report、SMM Core Risk Factors The greatest risk facing Nucor is a combination of internal and external challenges — internally, cost fluctuations in steel scrap and energy; externally, the impact of low-priced imported steel resulting from global (especially China's) overcapacity. Specifically: 1. Core Industry Risks ① Severe global supply-demand imbalance: Global steel surplus capacity reached 704 million net mt in 2025 (8 times US annual production). It is expected to further increase to 795 million mt by 2027. ② Regional impact: China's annual production has exceeded 1 billion mt in each of the past 8 years, and Chinese steelmakers continue to invest in new capacity in Southeast Asia and Africa. ② Import shock: This surplus leads to a flood of low-priced steel into the US market, creating significant downward pressure on Nucor's product prices, sales, and profit margins. 2. Production Cost Risks ① Steel scrap price sensitivity: Nucor uses 100% electric arc furnaces (EAF), with steel scrap being the largest cost item. Steel scrap prices fluctuate significantly and are beyond Nucor's control. ② Supply chain uncertainty: Although Nucor has achieved a degree of self-sufficiency through its DRI plants and DJJ recycling system, pig iron and iron ore pellets still rely on international procurement, facing geopolitical risks (e.g., Ukraine, Russia, Brazil). 3. Operational Challenges ① Energy-intensive nature: Steelmaking relies on large amounts of electricity (for melting) and natural gas (for heating and DRI production). ② Cost pass-through: Energy prices are affected by demand, the regulatory environment, and transmission infrastructure (pipelines/power grid), and cost surges may erode profits. 4. Compliance and ESG Risks ① Emission reduction pressure: The steel industry faces intense scrutiny due to greenhouse gas (GHG) emissions. ② Policy risk: Although Nucor's emission intensity is far lower than its blast furnace peers, increasingly stringent environmental protection laws and regulations may increase capital expenditures or restrict operations at existing facilities. 5. End-Use Market Risks ① Industry cyclicality: The steel industry is highly correlated with the macro economy. ② End-use market fluctuations: Nucor's largest market is non-residential construction. If this sector (e.g., commercial offices, industrial facilities) contracts due to high interest rates or economic recession, it will directly impact Nucor's performance severely. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. The copyright, trademark rights, domain name rights, commercial data information property rights, and other related intellectual property rights of all content contained in this report (including but not limited to information, articles, data, charts, pictures, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) are owned or held by SMM or its related right holders. 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