Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core Views - **Coke**: On November 13, the main coke contract closed at 1,686 yuan/ton, with an intraday decline of 0.30%. The position of the main contract was 37,800 lots, a decrease of 164 lots from the previous trading day. In the spot market, the latest quoted price of the flat - price index of quasi - first - grade wet - quenched coke at Rizhao Port was 1,620 yuan/ton, unchanged from the previous week; the ex - warehouse price of quasi - first - grade wet - quenched coke at Qingdao Port was 1,540 yuan/ton, a week - on - week decrease of 1.91%. This week, the industrial game intensified, and the fourth round of spot price increase for coke was blocked. Overall, there are still differences on the raw material supply side of coke. Coking coal has seen a correction at the upper edge of the oscillation range, dragging down the coke futures trend. The subsequent focus is on the actual supply of coking coal at the end of the year [6][33]. - **Coking Coal**: On November 13, the main coking coal contract closed at 1,214 points, with an intraday decline of 0.29%. The position of the main contract was 592,100 lots, a decrease of 991 lots from the previous trading day. In the spot market, the latest quoted price of Mongolian coal at the Ganqimaodu Port was 1,385 yuan/ton, a week - on - week decrease of 3.5%. As macro - disturbances ease, coking coal has returned to the fundamental game. Currently, the market still has differences on the end - of - year coking coal supply. On the one hand, safety inspections, anti - involution, and the expectation of production cuts after coal mines reach their annual production targets provide supply - side support for coal prices. On the other hand, the energy supply guarantee during the heating season has raised market concerns. Overall, the market is in a stalemate between bulls and bears. The main coking coal contract has seen a correction at the upper edge of the previous oscillation range, and the subsequent focus remains on the actual supply of coking coal [7][34]. 3. Summary by Directory Industry News - **US Government "Shutdown" Ended**: On November 12, local time, US President Trump signed a federal government temporary appropriation bill, ending the 43 - day federal government "shutdown". The bill will provide continuous funding for the federal government, allowing most government agencies to obtain operating funds until January 30, 2026 [8]. - **Stable Price of Coking Coal in Jinzhong Market**: On November 13, the price of coking coal in the Jinzhong market remained stable. The ex - factory price of coking coal for quasi - first - grade wet - quenched coke in Jiexiu (A≤9.5, S≤0.75, V≤28, G≥65, CSR≥60, MT≤8) was 1,220 yuan/ton, including cash and tax [9]. Spot Market | Variety | Current Value | Weekly Change | Monthly Change | Annual Change | Year - on - Year Change | | --- | --- | --- | --- | --- | --- | | Rizhao Port Quasi - first - grade Coke (Flat - price) | 1,620 yuan/ton | 0.00% | +3.18% | - 4.14% | - 11.96% | | Qingdao Port Quasi - first - grade Coke (Ex - warehouse) | 1,540 yuan/ton | - 1.91% | - 0.65% | - 4.94% | - 10.47% | | Ganqimaodu Port Mongolian Coking Coal | 1,385 yuan/ton | - 3.48% | - 0.36% | +17.37% | - 2.46% | | Jingtang Port Australian - produced Coking Coal | 1,620 yuan/ton | - 2.99% | - 2.41% | +8.72% | - 2.99% | | Jingtang Port Shanxi - produced Coking Coal | 1,830 yuan/ton | +1.67% | +5.17% | +19.61% | +7.65% | [10] Futures Market | Futures | Active Contract | Closing Price | Change Rate | Highest Price | Lowest Price | Trading Volume | Volume Difference | Position | Position Difference | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Coke | | 1,686.0 yuan/ton | - 0.30% | 1,698.0 yuan/ton | 1,674.0 yuan/ton | 13,768 | - 312 | 37,775 | - 164 | | Coking Coal | | 1,214.0 yuan/ton | - 0.29% | 1,224.5 yuan/ton | 1,202.0 yuan/ton | 572,483 | 20,703 | 592,106 | - 991 | [13] Relevant Charts - **Coke Inventory**: Charts show the inventory trends of 230 independent coking plants, 247 steel - mill coking plants, port coke, and total coke inventory from 2020 - 2025 [14][15][16]. - **Coking Coal Inventory**: Charts display the inventory trends of mine - mouth coking coal, port coking coal, 247 sample steel - mill coking coal, and all - sample independent coking plant coking coal from 2019 - 2025 [19][22][24]. - **Other Charts**: Include domestic steel - mill production (blast furnace operating rate and steel - mill profitability), Shanghai terminal wire and screw procurement volume, coal - washing plant production (coal - washing plant clean coal inventory and operating rate), and coking plant operation (ton - coke profit and coke oven capacity utilization rate) [26][27][32]. Market Outlook The analysis and outlook for coke and coking coal are consistent with the core views, emphasizing the importance of the actual supply of coking coal at the end of the year [33][34].

Group 1 - The core argument highlights the strategic anxiety of the U.S. in resource competition, as China restructures global supply chains through nuclear energy orders while U.S. politicians debate the effectiveness of tariffs [1] - The U.S. declaration to "break China's rare earth monopoly within a year" is seen as an emotional response to setbacks in the tariff war, with China controlling 70% of global rare earth reserves and 85% of refining capacity, making it difficult for the U.S. to compete [3] - The technological gap in rare earth extraction is significant, with Chinese companies having a 40% lower cost and 25% higher yield in producing high-purity praseodymium and neodymium compared to U.S. labs [3] Group 2 - China has strategically positioned itself in the pharmaceutical supply chain, controlling 60% of finished drug raw materials and 80% of antibiotic intermediates, which poses a greater risk to the U.S. than the rare earth situation [5] - The dominance of Chinese companies in the pharmaceutical sector is illustrated by Shandong Xinhua Pharmaceutical's 85% market share in aspirin raw materials and Zhejiang Medicine's control over the vitamin E supply chain [5] - If the U.S. strictly enforces manufacturing repatriation, it could face a shortage of penicillin raw materials within three years and basic antibiotics within seven years [5] Group 3 - The significance of China's nuclear energy orders is underscored by the reception of a Chinese delegation in Kazakhstan, where a $10 billion nuclear power deal was secured, reflecting China's strategic advantage in the energy sector [7] - China’s comprehensive approach includes low-interest loans and long-term uranium supply agreements, creating a competitive edge that is difficult for others to replicate [7] - The collaboration between China and Kazakhstan in nuclear energy illustrates a shift in resource control and rule-making in the global energy landscape [7] Group 4 - China's strategic initiatives extend beyond rare earths, as it establishes nuclear energy footholds in Kazakhstan, controls rubber pricing in Southeast Asia, and builds alliances for cobalt and lithium resources in Africa [9] - The integration of industry, finance, and technology in China's strategy is more impactful than the U.S. tariff battles, as China leverages its resource advantages to influence international rules [9] - The commitment from Kazakhstan's president regarding uranium supply security signals the beginning of a broader strategic influence that could surpass the current rare earth dynamics [9]

Core Viewpoint - The article discusses the strategic implications of China's rare earth export controls in response to U.S. technology sanctions, highlighting how China is positioning itself as a rule-maker in the global supply chain while undermining U.S. leverage in high-tech industries [3][5][18]. Group 1: U.S. Actions and Responses - In late May, news broke of China's upgraded rare earth export controls, causing alarm in the U.S. and Europe, with some companies reportedly exhausting their inventories in just three days [3][5]. - The Trump administration attempted to counter China's influence by restricting exports of high-end electronic design automation (EDA) software and halting key technology exports for aircraft engines, aiming to pressure China on rare earth supplies [5][9]. - These U.S. actions are seen as a miscalculation, as they rely on high-tech components that are dependent on rare earth materials controlled by China [5][10]. Group 2: China's Strategic Response - China opted for a measured response, adjusting its rare earth export approval process to favor European companies while tightening restrictions on the U.S., effectively establishing new rules for cooperation [7][9]. - This approach is framed as a way to assert China's role as a rule-maker in the global supply chain, offering conditional cooperation to Europe while warning against alignment with U.S. policies [9][16]. - The strategy aims to create a divide between the U.S. and Europe, as European companies express urgency in securing rare earth supplies to maintain operations [10][14]. Group 3: Implications for Global Supply Chains - China's rare earth controls are not merely a defensive tactic but a strategic upgrade, signaling that it can leverage its resources to reshape global supply dynamics [18][20]. - The article emphasizes that rare earths serve as a key to negotiating terms rather than a weapon for confrontation, indicating a shift in how China engages in industrial competition [16][20]. - U.S. companies are already feeling the impact, with reports of production halts and delays due to uncertainty in rare earth supply, highlighting the interconnectedness of global supply chains [14][18].

Core Insights - The article highlights the shift of manufacturing and technological leadership from the United States to China, particularly in the field of hyaluronic acid, which has seen a dramatic price reduction and increased accessibility due to Chinese innovation [1][4][7]. Group 1: Industry Overview - The U.S. initially dominated the hyaluronic acid market, with prices soaring to $200,000 per kilogram, making it inaccessible for many patients [1]. - Chinese biopharmaceutical scientist Ling Peixue successfully developed a scalable production method for hyaluronic acid, reducing its price to 1% of the U.S. equivalent, thus revolutionizing the global market [4][5]. - China now controls over 80% of the global supply of hyaluronic acid raw materials, establishing a robust industry chain worth several hundred billion yuan [4]. Group 2: Technological Advancements - Ling Peixue's team has made significant advancements in the application of hyaluronic acid, including the development of the eye medication "Aivi," which has transformed cataract surgery, reducing costs from 500 yuan to 80 yuan and time from several days to just 10 minutes [5][7]. - The innovation extends beyond medical applications, with Chinese scientists leading the way in the beauty market, having developed multiple iterations of topical hyaluronic acid technology [5][7]. Group 3: Competitive Landscape - Major global players like Bausch & Lomb have adopted Chinese-developed technologies in their products, indicating a shift in the competitive landscape where U.S. companies are increasingly reliant on Chinese innovations [5]. - The article emphasizes that true industrial competitiveness lies in mastering core technologies and creating a sustainable innovation ecosystem, contrasting the U.S. focus on internet and financial sectors with China's commitment to manufacturing and key industries [7][8].