[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.

[SMM Daily Review of Coking Coal and Coke] Coking Coal Market: Low-sulphur coking coal in Linfen is quoted at 2,020 yuan/mt. In coking coal, frequent and strict safety inspections at Shanxi mines have led to production declines at most mines, with overall supply from production areas remaining constrained. Spot prices for high-quality coking coal remain firm at high levels, while downstream purchasing is becoming more rational. Market concerns over future weakness have driven up the failed bid rate in online auctions, trading volumes for high-priced coal have pulled back, and mine shipments have slowed. However, inventories at most mines are generally low, and miners maintain a stance of holding prices firm. Mainstream coal prices stayed steady for the time being. Coke Market: The nationwide average price of quasi-first-grade dry-quenched metallurgical coke was 2,090 yuan/mt. Supply side, recent mixed performance in coking coal auctions has slightly eased cost pressure for coke producers, with coking enterprises maintaining stable operating rates and smooth shipments, showing no clear inventory pressure. Demand side, steel mill maintenance and production cut plans have increased, causing a slight pullback in coke demand. Combined with weak profitability at steel enterprises, purchasing continues to be volume-controlled. In summary, market sentiment has weakened, the coke supply-demand balance is tilting toward looseness, and the tug-of-war between steel and coke enterprises has intensified. In the near term, the coke market is expected to remain largely stable. [SMM Steel]

In H1 2026, the low-grade zinc oxide market was characterized by tight supply, rising costs, demand under pressure, and prices fluctuating at highs. After the Chinese New Year, enterprises gradually resumed operations, but constrained by tight supply of raw materials such as steel dust and electric furnace dust, as well as persistent invoice issues, the industry's operating rate and production release were limited.

[SMM Coke and Coking Coal Daily Briefing] Coking Coal Market: Low-sulphur coking coal in Linfen is quoted at 2,050 yuan/mt. Coking coal side, supply disruptions at production sites are frequent, production resumptions are progressing slowly, and resources remain tight. Recently, arrivals at downstream coke enterprises have improved, and coupled with rising resistance to high prices, purchases by steel mills and traders are trending cautious. Coal mine shipments have weakened, and bids lack the momentum to rise. However, inventory at most mine sites is low, and mines are firmly holding prices steady, keeping mainstream coal prices free from significant declines, with only some high-priced coal undergoing slight corrections. Coke Market: The nationwide average price of quasi-first-grade metallurgical coke - dry quenching is 2,090 yuan/mt. Supply side, coke enterprises currently have moderate profits, and production willingness has edged up slightly, keeping coke supply steady. However, arrivals at downstream steel mills have improved, and rigid demand for coke has weakened, with shipments from many producers slowing, causing supply-demand conditions to ease marginally. Demand side, the plum rain season has ended in east and south China, but high temperatures persist, and demand for finished steel has not recovered. Multiple rounds of coke price increases have squeezed steel mill profits, and with peak rigid demand having passed, steel mills are cutting purchase volumes. Overall, hot metal output is expected to pull back, and steel mills' purchase willingness is declining, so coke prices are likely to remain stable in the short term.[SMM Steel]

[SMM Silicon PV Morning Brief] Silicon metal: Yesterday, SMM east China oxygen-blown #553 silicon was around 9,000 yuan/mt, and #441 silicon was around 9,200 yuan/mt, stable from the previous day. The most-traded contract on the futures market consolidated in a stalemate below 8,400 yuan/mt. Recently, driven by supply-demand fundamentals, prices have encountered resistance, and are in a stalemate, consolidating on a subdued note. Wafers: Market prices for 18X wafers are 0.85-0.88 yuan/piece, 210RN wafers at 0.96-0.98 yuan/piece, and 210N wafers at 1.16-1.18 yuan/piece. Recently, cell enterprises have been calling for lower wafer prices, putting near-term wafer prices under pressure.