This week, finished steel continued its gradual decline, while raw materials began to stabilize, with coking coal rebounding to some extent. During the week, rumors about a coal mine accident in Shanxi and customs clearance restrictions at the Mongolian border spread, boosting sentiment. Coupled with the China Mineral Resources talks, the raw materials side rebounded from lows. In the second half of the week, as rumors of maintenance at steel mills across various regions emerged, negative feedback expectations intensified somewhat, and raw materials pulled back. Approaching the weekend, however, the 10th round of coke price increases was initiated, pushing coking coal and coke futures higher. In the spot market, the off-season characteristics of end-users became increasingly evident, with the market restocking at low prices as needed. With spot prices remaining relatively firm, the spot-futures price spread continued to widen...

[SMM Coking Coal and Coke Daily Brief] Coking Coal Market: Linfen low-sulphur coking coal offers are at 2,050 yuan/mt. For coking coal, recently the resumption of production at mines in Qinyuan County has been slow, and some mines have further cut production to varying degrees after resuming operations. Coking coal supply remains tight. However, downstream buyers are showing fear of high prices, with sales of some high-priced coal types turning sluggish. Online auctions have seen a marked increase in failed lots. In the short term, the coking coal market may start to stabilize. Coke Market: The nationwide average price of quasi-first-grade metallurgical coke (dry quenched) is 2,090 yuan/mt. Regarding news, coke enterprises in various regions have initiated the tenth round of coke price increases, to be effective from 00:00 on July 6, 2026. In terms of supply, the ninth round of coke price increases have been implemented, leaving most coke producers profitable and with moderate production enthusiasm. However, downstream purchasing enthusiasm has weakened, and traders are actively selling, resulting in an increase in coke supply. On the demand side, finished steel prices at steel mills have been drifting lower, and steel mill profits have further narrowed, prompting mills to start cutting hot metal production. With hot metal production expected to decline further, rigid demand for coke is weakening. Overall, market sentiment has weakened. In the short term, the coke market may be generally stable with a slight rise, while the tenth round of price increases may face some bargaining. [SMM Steel]

[SMM Analysis] Stainless Steel Costs and Prices Pull Back in Tandem, Steel Mill Profits Remain Basically Stable This week, stainless steel prices and production costs fell together, and steel mill profit margins remained basically stable. Based on 304 cold-rolled as the benchmark, the profit margin calculated with current raw materials was 2.07%, while that using inventory raw materials was 1.33%. Nickel-based raw material cost side, high-grade NPI prices showed a pullback trend this week. During the week, SHFE nickel and SS futures were in the doldrums overall. Although there were widespread expectations of tight supply for high-grade NPI and upstream smelters and traders maintained firm offers, stainless steel mills' production schedule expectations pulled back, leading to weaker demand, and coupled with the simultaneous decline in stainless steel prices, the industry's acceptance of high-priced supply was very limited, and market transactions remained sluggish. As of this Friday, high-grade NPI with mainstream grade of 10%-12% fell by 8 yuan per nickel unit, closing at 1,133 yuan per nickel unit. Stainless steel scrap market, stainless steel scrap prices pulled back slightly this week. The weak futures market transmitted downward to spot cargo, and combined with sluggish off-season demand and reduced steel mill production schedules, rigid demand weakened further. Although steel scrap had an economic advantage over NPI, providing floor support for prices, uncertainty over Indonesian policies kept the market in a wait-and-see stance. Under the weight of bearish fundamentals, short-term stainless steel scrap prices are expected to continue to be in the doldrums. As of this Friday, the mainstream 304 off-cuts price in the Shanghai region fell by 100 yuan/mt, with the latest quotation at approximately 10,400 yuan/mt. Chromium-based raw material cost side, high-carbon ferrochrome prices continued to edge down this week. High-carbon ferrochrome production remained high...

[Brazil] This week, Brazilian steel mills cut sheets & plates prices to stimulate sales, with the domestic HRC price index falling 29.8 USD/tonne to 701.6–759.2 USD/tonne. Meanwhile, the import market was also weakening, with HRC import prices dropping 30 USD/tonne to 620–660 USD/tonne, and hot-dip galvanized import prices plunging 90 USD/tonne to 760–820 USD/tonne. However, due to Brazil's 25% import tariff and concessions from domestic steel mills, buyers held a cautious wait-and-see attitude toward seaborne resources.

Grain-Oriented Silicon Steel Price Dynamics Shanghai B23R085 grade: 12,200-12,200 yuan/mt Wuhan 23RK085 grade: 11,700-11,700 yuan/mt Spot prices for cold-rolled grain-oriented silicon steel edged higher this week, with moderate trading activity in the market. Following the full implementation of earlier price hike policies by steel mills, the market digestion pace remained smooth. Traders held a strong sentiment to hold prices firm, pushing the center of spot quotations slightly higher. Demand side, just-in-time procurement by transformer and power equipment enterprises remained normalized. While end-users restocked in batches as needed, some enterprises locked in forward raw materials in advance, releasing a small amount of restocking demand, providing sufficient just-in-time demand support. Supply side, production pace at various steel mills was stable, with mainstream specification resources being released normally. Overall supply was ample, with no significant pressure from either inventory buildup or rapid destocking. Looking ahead, mainstream steel mills still show willingness to hold prices firm. Additionally, with power grid investment under the "15th Five-Year Plan" ramping up, orders from UHV and data center substation projects continue to be released, and medium and long-term downstream demand expectations continue to improve. Overall, spot prices lack downward momentum in the near term, supported by both raw material costs and terminal orders. Next week, the spot market for cold-rolled grain-oriented silicon steel is expected to maintain a generally stable with slight rise trend. Data Source Statement: Except for publicly available information, all other data is processed by SMM based on public information, market communication, and SMM's internal database models, for reference only, and does not constitute decision-making advice. Note: This article is original content belonging to this official account. For reprinting, whitelisting, cooperation, and other requests, please contact us. Without permission, the above content may not be reprinted, modified, used, sold, transferred, displayed, translated, compiled, disseminated, or disclosed to third parties or licensed for use by third parties in any form. Otherwise, once discovered, Shanghai Metals Market will pursue legal liability for infringement, including but not limited to requiring the assumption of contractual breach liability, return of unjust enrichment, and compensation for direct and indirect economic losses.

Non-oriented Silicon Steel Price Dynamics Shanghai B50A800 Grade: 4,380-4,380 yuan/mt Guangzhou B50A800 Grade: 4,200-4,200 yuan/mt Wuhan 50WW800 Grade: 4,300-4,300 yuan/mt Shanghai Market: The spot price of cold-rolled non-oriented silicon steel in the Shanghai market remained in the doldrums this week, with overall transaction performance showing no improvement. Market feedback indicated that HRC futures drifted lower this week, and the supply pressure for non-oriented silicon steel was relatively high. Combined with weak market demand during the off-season, the overall trading atmosphere was sluggish. Downstream motor enterprises mainly purchased as needed, with a strong wait-and-see sentiment. Overall, it is expected that next week, the spot price of cold-rolled non-oriented silicon steel in the Shanghai market may continue to remain in the doldrums. Guangzhou Market: The cold-rolled non-oriented silicon steel market in Guangzhou remained in the doldrums this week, with mainstream grades dropping by 50 yuan/mt and average transaction performance. Market feedback indicated that HRC futures weakened this week, and currently being in the demand off-season, the purchasing demand from downstream motor enterprises was moderate. Some traders reported that the market transaction atmosphere did not recover and remained relatively sluggish. Overall, it is expected that next week, the cold-rolled non-oriented silicon steel price in Guangzhou may remain in the doldrums. Wuhan Market: The cold-rolled non-oriented silicon steel market in Wuhan remained temporarily stable this week, with poor transaction performance. Market feedback indicated that the ordering costs of state-owned steel mills were firm, and traders' purchase prices were relatively high. However, the impact of the off-season was evident, and the purchasing pace of downstream end-users slowed down. Overall, it is expected that next week, the spot price of cold-rolled non-oriented silicon steel in Wuhan may remain in the doldrums. Data Source Statement: (The data in this report, except for publicly available information, are all based on public information (including but not limited to industry news, seminars, exhibitions, corporate financial reports, broker reports, National Bureau of Statistics data, customs import and export data, various data published by major associations and institutions, etc.), market communication, and SMM's internal database model, derived through comprehensive analysis and reasonable inference by the research team, for reference only, and do not constitute decision-making advice.) SMM reserves the final right of interpretation for this statement and reserves the right to adjust and modify the content of the statement according to actual circumstances.

In yesterday's [SMM Analysis] EU Steel Tariff Wall Doubles to 50%: Reconstructing the New Quota System & In-Depth Analysis of 1A HRC, SMM deeply analyzed the brutal allocation logic of the EU's new 18.35 million tonnes quota. When the "50% tariff wall" and the "melting and pouring" rules completely block traditional tax-free export paths, the global steel supply chain is undergoing a forced reshuffle. Today, we shift our perspective to the ripple effects and macro-level forecasts of this storm.

[SMM Coke and Coking Coal Daily Briefing] Coking Coal Market: Low-sulphur coking coal in Linfen offers at 2,050 yuan/mt. In coking coal, some mines in Shanxi are still under safety supervision, limiting the release of coking coal production. However, steel prices have weakened, downstream sentiment is cautious, mostly purchasing as needed, some high-priced coal varieties saw weak transactions, the overall failure rate of online auctions gradually increased, and market participants' wait-and-see sentiment has noticeably increased. Coke Market: The nationwide average price of quasi-first-grade metallurgical coke dry quenching is 2,090 yuan/mt. In terms of news, market rumors that coke prices will undergo the 10th round of increase, effective from 00:00 on July 6, 2026. Supply side, coke producers' profits have recovered, some producers significantly increased production enthusiasm, and coke supply has increased somewhat. Demand side, steel prices have continued to pull back, steel mills' profitability is poor, while the off-season impact is intensifying, some steel mills already have production cut maintenance plans, cautious about coke procurement. In summary, market sentiment has cooled somewhat, and the short-term coke market is likely to run generally stable with a slight rise. [SMM Steel]

Tang Eng Iron Works has issued flat prices for its July stainless steel products, snapping a seven-month streak of consecutive price increases. The decision covers its main 304 hot-rolled and cold-rolled coils as well as 316L surcharges, aligning with major upstream peers Yusco and Walsin Lihwa, which also rolled over their rates yesterday, keeping both sheet products and wire rods steady across the industry. The move marks a temporary pause to seven months of sustained price increases, bringing a period of stability to Chinese Taiwan's domestic stainless steel market.

According to SMM statistics, both mill inventory and social inventory experienced varying degrees of buildup. Total construction steel inventory reached 8.2329 million mt, up 213,600 mt WoW (up 2.66% WoW), further intensifying inventory pressure.