From the demand side, the fourth round of price increases for coke has been fully implemented. However, due to the rapid rise in coking coal prices, the cost of coal fired by coking companies is still high. Although losses have narrowed marginally, the overall profit recovery is still very limited. However, even when profits are extremely compressed, most coking companies choose to passively replenish stocks to maintain production operations. This passive act of “the more you lose, the more you make up”, itself reflects that the current rigid demand for raw materials has not clearly loosened. In terms of steel mills, iron and water production rebounded slightly this week. Recently, apparent steel consumption and the pace of inventory removal all showed signs of marginal improvement. Although this is not enough to confirm that peak season demand has officially started, the market may have begun to trade peak season expectations ahead of schedule. If steel consumption continues to pick up and inventories continue to be eliminated, the pressure on steel mills to cut production is expected to ease, and their ability to withstand rising raw material prices will also increase.

From the demand side, the fourth round of price increases for coke has been fully implemented. However, due to the rapid rise in coking coal prices, the cost of coal fired by coking companies is still high. Although losses have narrowed marginally, the overall profit recovery is still very limited. However, even when profits are extremely compressed, most coking companies choose to passively replenish stocks to maintain production operations. This passive act of “the more you lose, the more you make up”, itself reflects that the current rigid demand for raw materials has not clearly loosened. In terms of steel mills, iron and water production rebounded slightly this week. Recently, apparent steel consumption and the pace of inventory removal all showed signs of marginal improvement. Although this is not enough to confirm that peak season demand has officially started, the market may have begun to trade peak season expectations ahead of schedule. If steel consumption continues to pick up and inventories continue to be eliminated, the pressure on steel mills to cut production is expected to ease, and their ability to withstand rising raw material prices will also increase.