[SMM Daily Brief on Coking Coal and Coke] News-wise, some regional steel mills have accepted an increase of 50 yuan/mt for wet-quenched coke and 55 yuan/mt for dry-quenched coke, effective from 0:00 on June 15, 2026 (the seventh round). Supply side, affected by the slowing rise in coking coal prices, the sixth round of coke price increases has been implemented, yet cost pressure on coking plants remains, and their losses have not materially improved. Coupled with stricter safety inspections, the release of coking capacity is restricted, while procurement by downstream steel mills remains active and coking plant inventories stay low, keeping coke supply persistently tight. Demand side, current steel mill operations are stable, and hot metal output stays high, ensuring steady coke demand, with low-inventory steel mills showing strong willingness to restock.

[SMM Coking Coal and Coke Daily Review] Supply side, as coking coal prices, the raw material, continue to rise, some coke producers are forced to implement production restrictions, affecting production levels. In addition, shipments at some coke producers were not smooth, leading to a slight increase in coke inventories at these producers. Demand side, hot metal production at steel mills overall remains at a high level, and combined with still-low coke inventories at some mills, there is rigid demand for coke. In summary, coke fundamentals remain tight, with strong cost support. In the short term, the coke market continues to hold up well, with expectations of a seventh round of price increases.

[SMM Coking Coal and Coke Daily Briefing] In terms of news, mainstream steel mills have accepted the sixth round of coke price increases, with wet-quenched coke up by 50 yuan/mt and dry-quenched coke up by 55 yuan/mt, effective from 0:00 on June 10, 2026. Supply side, coking coal prices stayed high overall, with the pace of increases slowing partially. Coke enterprises' raw material costs remained elevated, capacity release was constrained, and tight procurement of high-quality coal feedstocks further limited production. Currently, coke shipments were smooth, and enterprise inventories were generally low. Demand side, hot metal production at steel mill blast furnaces remained high, while their own coke inventories kept declining, providing solid rigid demand support and strong restocking enthusiasm. In summary, market sources indicated that coke enterprises will issue a notice for the seventh round of coke price increases this Friday. The coke market will continue to strengthen in the short term.

[SMM Coke and Coking Coal Daily Briefing] Supply side, coking coal prices keep rising, and the cost of furnace feedstock stays high, continuously squeezing profit margins of coke enterprises, leading to weakened production willingness and a slight pullback in coke output. At present, the shipment pace of coke enterprises is smooth, and coke inventory at their plants keeps declining. Demand side, downstream steel mills are operating normally, blast furnace operating rates stay high, and there is stable rigid demand for coke. In some regions, steel mills' coke arrivals are insufficient, and restocking demand has increased to some extent. Overall, the current supply-demand pattern in the coke market remains tight. In the short term, the coke market will continue to show a strong tendency, with price movements overall improving.

[Silicon Coal Prices Rose Slightly, Trading Game Sentiment Increased in Silicon Metal Market]: Supply side, northern silicon enterprises' operating rates were basically stable, while southwestern silicon enterprises' operating rates gradually improved. As the southwest successively entered the rainy season with electricity prices adjusted downward, a small number of silicon enterprises resumed production or increased operations, but the pace of production release was relatively slow. Cost side, although southwestern rainy season costs were periodically adjusted downward, current regional costs remained higher than those of northern silicon enterprises in production. Therefore, rising silicon coal raw material prices provided strong cost support below silicon metal prices, while prices above were constrained by the supply-demand relationship. Silicon metal was in a trading game phase, with attention on changes in market sentiment.

This week, ferrous metals mostly retreated after rapid rises, with only coking coal and coke standing out, briefly hitting the daily limit up at the open. Early in the week, the market was primarily characterized by coking coal and coke leading the gains across ferrous metals. A coal mine accident occurred in Shanxi over the previous weekend, strengthening market expectations of tighter supply driven by stricter subsequent regulatory oversight and increased production shutdowns at coal mines. Ferrous metals rebounded on cost support. However, some coal mines quickly resumed production afterward, and combined with the prospect of a US-Iran deal being reached, crude oil declines dragged iron ore prices lower, loosening cost support. Most products except coking coal and coke retreated from highs. In the latter half of the week, data on the five major steel products were released, showing continued inventory destocking but marginally weakening apparent demand, with supply-demand pressure rising somewhat. Spot market side, spot prices remained relatively firm this week, with the spot-futures price spreads for both hot-rolled coil and rebar widening, providing shipment opportunities for basis traders, while end-users continued to restock on a need-based, low-price approach...

[SMM Coking Coal and Coke Daily Brief] Supply side, coking enterprises saw increased costs, and with strong sales performance and low inventory levels at some coking enterprises, coke fundamentals remained tight. Demand side, steel mill production enthusiasm was moderate, and some steel mills had low coke inventory levels, sustaining rigid demand for coke. However, the off-season impact on the end-user finished steel market intensified, steel prices performed weakly, and steel mills showed limited acceptance of further coke price increases. In summary, the coke market is expected to continue to hold up well next week.

[SMM Coking Coal and Coke Daily Brief] News: The market heard that coke would launch the fifth round of increase tomorrow, with a magnitude of 50 yuan/mt rather than the previously rumored 100 yuan/mt. In terms of supply, coke price increases failed to cover coking coal price increases, squeezing coke producers' profits. Additionally, most coal mines in Shanxi suspended production for self-inspection, and raw material shortages led to passive production cuts at some coke producers, resulting in declining coke supply. Demand side, steel mills maintained high operating rates, hot metal production stayed at a relatively high level, and buyers actively procured coke. In summary, fundamentals remained tight, and the coke market may hold up well in the short term.

[SMM Coking Coal and Coke Daily Brief] News: Mainstream steel mills in Hebei and Shandong accepted the fourth round of coke price increases, with wet quenching coke raised by 50 yuan/mt and coke dry quenching raised by 55 yuan/mt, effective from midnight on May 26, 2026. In terms of supply, the fourth round of coke price increases has been implemented, and most coke producers maintained moderate profits. However, coking coal prices have expectations of rising, which may squeeze coke producers' profits. Coke producers showed limited production enthusiasm, and coke supply remained stable for now. Demand side, finished steel futures pulled back notably, but steel mills' daily average hot metal production continued to fluctuate at highs, sustaining rigid demand for coke, and buyers still had willingness to restock. In summary, coke had strong cost support, and the fourth round of coke price increases has been fully implemented. In the short term, the coke market is expected to hold up well.

SMM Cold-Rolled Production Schedule: May Steel Mill Cold-Rolled Production Schedule Up 2%, Daily Average Production Schedule Down 1.4% According to the latest SMM tracking data, the total planned cold-rolled commercial steel volume from 31 mainstream cold-rolled sheet and coil steel mills was 4.2123 million mt this month, up 78,500 mt MoM from actual cold-rolled commercial steel production, an increase of 1.9%. On a daily average basis, May had one more day than April. The daily average cold-rolled commercial steel production schedule in May was 135,900 mt, down 1.4% MoM from the daily average actual cold-rolled commercial steel production in the previous month. SMM HRC Production Schedule: May HRC Production Schedule Up 0.3% MoM, Daily Average Down 3% According to the latest SMM tracking data, the total planned HRC commercial steel volume from 39 mainstream steel mills was 13.3564 million mt this month, up 37,400 mt MoM from actual HRC commercial steel production, an increase of 0.3%. On a daily average basis, May had one more day than April. The daily average HRC commercial steel production schedule in May was 430,900 mt, down 3.0% MoM from April's actual daily average production. Currently, steel mill profits and order conditions were favorable, and production enthusiasm was high. The overall May production schedule was basically flat MoM compared to April's actual production. May had fewer days than April, and on a daily average basis, steel mills' HRC production schedule declined MoM. Summary: Total production schedule for hot-rolled commercial steel at steel mills in May was basically flat MoM. However, since May has more days than April, the daily average production schedule decreased MoM, and supply pressure was slightly lower than previous expectations. Demand side, sheets & plates demand is expected to weaken marginally in mid-to-late May. Hot-rolled coil inventory is expected to continue destocking over the next 2–3 weeks, and the accumulation of supply-demand imbalance before month-end in May will be limited. Other aspects, the ex-China energy premium is unlikely to ease in the short term, and hot metal production continues at elevated levels. HRC prices are expected to fluctuate at highs before late May. During this period, the pullback in coking coal prices driven by expectations of easing Middle East conflicts and the periodic weakening in export order-taking for hot-rolled coils are expected to put prices under pressure temporarily, though the downside is limited.