Group 1: Report Industry Investment Rating - Not provided in the content Group 2: Report's Core View - In October, at the macro - level, there were strong expectations for the Fourth Plenary Session of the 20th Central Committee, and the Sino - US trade conflict eased. At the industrial level, steel data was better than expected, achieving production increase and inventory reduction, and the spot trading of coking coal and coke was good. The main contracts of coking coal and coke maintained a strong trend, with a significant upward shift in the center of gravity. As of October 31, coke 01 rose 7.99% to close at 1777, and coking coal 01 rose 12.22% to close at 1286 [6]. - Looking forward to November, at the macro - level, major events are basically settled, and expectations will weaken. At the industrial level, as it returns to the off - season fundamentals, with the compression of steel mill profits, it is feared that hot metal production will not be able to remain at a high level. Be vigilant about the short - term callback risk of coking coal and coke, but the callback space is expected to be limited under supply - side constraints. In the long term, under the expectations of anti - involution and strict coal mine safety supervision, maintain a bullish view on coking coal and coke. Strategically, wait for the callback to buy on the long side for single - sided trading; pay attention to the 1 - 5 positive spread for arbitrage [6]. Group 3: Summary by Directory 1. Coke Monthly Market Tracking 1.1 Price - In October, coke prices were strong, and in November, pay attention to the opportunity to buy on dips. Two rounds of price increases were implemented in October, and the third round has started. For example, the Jiexiu quasi - first - grade coke ex - factory price increased from 1280 yuan/ton last month to 1380 yuan/ton this month [4][13]. - The freight rates for coke transportation showed mixed trends. For example, the freight from Xiaoyi to Rizhao remained unchanged at 180 yuan/ton, while the freight from Jiexiu to Fengnan increased by 5 yuan/ton to 145 yuan/ton [17]. 1.2 Supply - In October, coking plant operations declined, and the supply side tightened. Some coking plants were restricted by environmental protection and maintenance, and a few reduced production slightly due to losses. As of October 31, the capacity utilization rate of the national independent coking enterprises' full - sample was 73.44%, a decrease of 1.99 percentage points from the previous month, and the daily average coke output was 64.59 tons, a decrease of 1.75 tons from the previous month [27]. 1.3 Demand - Hot metal production declined slightly but remained at a high level, providing strong support for raw material demand. However, as the downstream enters the off - season in November, with the compression of steel mill profits, it is difficult for hot metal production to remain at a high level. As of October 31, the blast furnace operating rate of 247 sample steel mills was 81.75%, a decrease of 2.7 percentage points from the previous month, and the daily average hot metal output was 236.36 tons, a decrease of 6 tons from the previous month [35]. - Speculative sentiment improved, export profits declined slightly, and the spot trading volume of building materials was lower than the same period in previous years [38]. 1.4 Inventory - Steel mills reduced inventory, ports increased inventory, and coking enterprises' inventory reduction was not obvious, resulting in a decrease in the total inventory. As of October 31, the total coke inventory was 900.02 tons, a decrease of 20.39 tons from the previous month [41]. 1.5 Profit - The improvement in coke per - ton profit was not obvious, and the coke futures profit weakened. As of October 31, the per - ton profit of 30 independent coking enterprises' samples was - 32 yuan, an increase of 4 yuan from the previous month, and the coke 01 futures profit decreased by 54 yuan/ton to 105.2 yuan/ton compared with the previous month [51]. 1.6 Valuation - Coke 01's premium widened, and the 1 - 5 spread fluctuated. As of October 31, the coke 01 basis was - 88.13, a decrease of 46.5 from the previous month, and the coke 1 - 5 spread was - 139.5, an increase of 4 from the previous month [55]. 2. Coking Coal Monthly Market Tracking 2.1 Price - In October, coking coal prices were strong, and in November, pay attention to the opportunity to buy on dips. The spot prices of coking coal increased. For example, the price of medium - sulfur main coking coal in Jinzhong increased from 1270 yuan/ton last month to 1520 yuan/ton this month [4][61]. 2.2 Supply - In October, there were many accidents in domestic coal mines, and the supply side was tight. The safety inspections in coal - producing areas were frequent, and the production of some coal mines was restricted. The customs clearance of Mongolian coal fluctuated greatly in October, and the import of coking coal from January to September decreased year - on - year [4]. 2.3 Inventory - Downstream enterprises replenished inventory, upstream enterprises reduced inventory, and the total inventory increased slightly. As of October 31, the total coking coal inventory was 2587.90 tons, an increase of 5.58 tons from the previous month [77]. 2.4 Valuation - Coking coal 01 had a slight premium, and the 1 - 5 spread strengthened slightly. As of October 31, the coking coal 01 basis was - 61, a decrease of 122 from the previous month, and the coking coal 1 - 5 spread was - 68, an increase of 18 from the previous month [103].

1. Report Industry Investment Rating - Not provided in the content 2. Core Viewpoints of the Report - Last week, the spot transaction of coking coal improved. With the news of the upcoming central safety production assessment and inspection in 2025 and better - than - expected steel production reduction and inventory depletion data, both coking coal and coke fluctuated strongly. As of Friday's close, the coke 01 contract rose 0.87% to 1676, and the coking coal 01 contract rose 1.2% to 1179 [8]. - In the context of anti - involution expectations and over - production inspection policies, there are continuous disturbances on the supply side of coal mines. Pig iron production remains at a high level, and the spot transaction of coking coal is acceptable. The upward space of coking coal depends on the macro situation and the sustainability of steel inventory depletion. It is recommended to wait and see on a single - side basis and continue to pay attention to the reverse spread of coking coal 1 - 5. In the long term, coking coal maintains a bullish outlook under the expectations of a strict macro environment and coal mine safety supervision [8]. 3. Summary According to the Directory 3.1 Coke 3.1.1 Price - Last week, the futures market fluctuated strongly. The second - round price increase of spot coke started but has not been implemented yet. The spot price remained stable, and attention should be paid to this week's macro and steel data. The freight for coke transportation remained stable [6][9][16]. - The coke 01 contract rose 0.87% to 1676 as of Friday's close [8]. 3.1.2 Supply - Profit compression and production reduction in some coking plants led to a slight tightening of coke supply. As of October 17, the capacity utilization rate of all - sample independent coking enterprises was 74.24%, a decrease of 0.94 percentage points from the previous week, and the daily average coke output was 65.29 tons, a decrease of 0.83 tons from the previous week. The capacity utilization rate of 247 steel mills' coking plants was 84.72%, a decrease of 0.81 percentage points from the previous week, and the daily average coke output was 45.94 tons, a decrease of 0.44 tons from the previous week [27][32]. 3.1.3 Demand - Pig iron production remained at a high level, providing strong support for raw material demand. However, after the holiday, due to logistics, weather and other reasons, the inventory - building pace of steel mills was slow. As of October 17, the blast furnace start - up rate of 247 sample steel mills was 84.27%, unchanged from the previous week; the capacity utilization rate was 90.33%, a decrease of 0.02 percentage points from the previous week; the daily average pig iron output was 240.95 tons, a decrease of 0.07 tons from the previous week; and the profitability rate of steel mills was 55.41%, a decrease of 3.46 percentage points from the previous week [35]. - Speculative sentiment was average, export profit changed little, and the daily trading volume of building materials was lower than the same period in previous years [37]. 3.1.4 Inventory - Both upstream and downstream reduced their inventories, and the total inventory decreased. As of October 17, the total coke inventory decreased by 17.87 tons to 891.88 tons compared with the previous week. Among them, the port inventory increased by 0.06 tons to 195.15 tons, the inventory of all - sample independent coking enterprises decreased by 6.55 tons to 57.29 tons, and the inventory of 247 sample steel mills decreased by 11.38 tons to 639.44 tons [42][45]. 3.1.5 Profit - The profitability of coking enterprises was compressed, and the futures market profit of coke weakened slightly. The average profit per ton of 30 independent coking enterprises was - 13 yuan/ton, a decrease of 22 yuan from the previous week. The futures market profit of coke 01 decreased by 9.4 yuan/ton to 143.3 yuan/ton compared with the previous week [53]. 3.1.6 Valuation - The premium of coke 01 increased, and the 1 - 5 spread fluctuated. The basis of coke 01 decreased by 44.3 to - 81.86 compared with the previous week, and the 1 - 5 spread increased by 4 to - 148 compared with the previous week [57]. 3.2 Coking Coal 3.2.1 Price - Last week, the futures market fluctuated strongly, and it is expected to maintain a strong trend in the short term. Most of the spot prices increased [60][63]. - The coking coal 01 contract rose 1.2% to 1179 as of Friday's close [8]. 3.2.2 Supply - The supply from production areas continued to recover, the output of coal washing plants was basically flat, the daily customs clearance vehicle number at the Mongolian Ganqimaodu Port has recovered to over 1200 vehicles, and the year - on - year decline in imported coking coal from January to August 2025 narrowed [66][74]. - As of October 17, the capacity utilization rate of 314 sample coal washing plants was 35.79%, an increase of 0.47 percentage points from the previous week, and the daily average clean coal output was 26.11 tons, an increase of 0.45 tons from the previous week [71]. 3.2.3 Inventory - Downstream enterprises replenished their inventories appropriately, coal mines did not accumulate obvious inventories, and the total inventory increased. As of October 17, the total coking coal inventory increased by 42.95 tons to 2554.22 tons compared with the previous week. Among them, the inventory of mining enterprises increased by 9.55 tons to 205.41 tons, the port inventory decreased by 22.28 tons to 272.71 tons, the clean coal inventory of coal washing plants increased by 10.18 tons to 290.41 tons, the inventory of all - sample independent coking enterprises increased by 38.31 tons to 997.37 tons, and the inventory of 247 sample steel mills increased by 7.19 tons to 788.32 tons [77][80]. 3.2.4 Valuation - The basis of coking coal 01 weakened, and the 1 - 5 spread strengthened slightly. The basis of coking coal 01 decreased by 33 to 8 compared with the previous week, and the 1 - 5 spread increased by 14 to - 82.5 compared with the previous week [101].