Report Industry Investment Rating No relevant content provided. Core Viewpoints - The short - term macro environment for steel is positive, with supply contraction expectations, stable cost support, and the steel futures market may show a volatile and upward - biased pattern. The long - term trend depends on the actual demand during the peak season [3]. - Iron ore prices are bounded, with short - term stable fundamentals and long - term focus on hot - rolled coil inventory pressure. The current oscillation needs macro changes to break [20]. - For coal and coke, although there are import substitution effects, considering policy expectations and support for finished product prices, the medium - to - long - term trend is not pessimistic [29]. - The price of ferroalloys follows coal price fluctuations. In the short - term, there are still expectations of supply contraction, and in the long - term, demand support may weaken [45]. - The supply of soda ash exceeds demand, with high inventory and weak demand. Attention should be paid to cost fluctuations and price cuts by alkali plants [55]. - The glass market is in a weak balance, with high intermediate inventory and weak sales. Attention should be paid to policy guidance and short - term sentiment changes [80]. Summary by Directory Steel - **Supply**: Coal mine over - production governance and the "276 - working - day" policy support costs. There are expectations of supply contraction due to restrictions during the Tangshan parade [3]. - **Demand**: Steel export orders have improved slightly, but the price inversion still exists. The market depends on the actual demand during the peak season [3]. - **Price Data**: On August 13, 2025, the closing prices of steel futures contracts such as rebar and hot - rolled coil decreased compared to the previous day. The basis and spreads also showed corresponding changes [4][8][13]. Iron Ore - **Market Trend**: Iron ore prices are in a following state, with limited fundamental contradictions. The anti - spread is strengthening, and the price range is bounded [20]. - **Price Data**: On August 13, 2025, the closing prices of iron ore futures contracts decreased slightly compared to the previous day. The basis and some spot prices changed [21]. - **Fundamental Data**: Daily hot - metal production is stable at around 2.4 million tons, and port inventories are maintained. There are small changes in shipping and other data [24]. Coal and Coke - **Supply**: There are supply - side disturbances such as coal mine over - production inspections in Shanxi, but the import substitution effect is significant [29]. - **Demand**: Due to the support of finished product prices, steel mill profits are resilient, and the medium - to - long - term demand for coal and coke is not pessimistic [29]. - **Price Data**: On August 13, 2025, the basis, spreads, and costs of coal and coke futures and spot prices changed compared to the previous day [33][34][35]. Ferroalloys - **Market Trend**: The price of ferroalloys follows coal price fluctuations. There are still expectations of supply contraction in the short - term, and long - term demand support may weaken [45]. - **Price Data**: On August 13, 2025, the basis, spreads, and spot prices of silicon - iron and silicon - manganese changed compared to the previous day [46][48]. Soda Ash - **Supply - Demand Situation**: Supply is high, demand is weak, inventory is at a record high, and the market is in a state of supply exceeding demand [55]. - **Price Data**: On August 13, 2025, the prices of soda ash futures contracts decreased compared to the previous day, and the spreads also changed [56]. Glass - **Market Situation**: The market is in a weak balance, with high intermediate inventory, weak sales, and pressure on spot prices [80]. - **Price Data**: On August 13, 2025, the prices of glass futures contracts decreased compared to the previous day, and the spreads and basis changed [81]. - **Sales Data**: The sales rate in different regions shows certain fluctuations [82].

Summary of Coal Industry Conference Call Industry Overview - The conference call primarily discusses the coal industry in Shanxi Province, China, focusing on the implementation of the 276 working days policy and its implications for coal production and pricing [1][2][3]. Key Points and Arguments 1. **276 Working Days Policy Background**: - Initiated in 2016 to address overcapacity in the coal industry, the policy aimed to reduce operational days from 330 to 276 by accounting for holidays and rest days. However, it was not fully implemented due to supply security concerns [2][3]. 2. **Current Production Status**: - As of early 2023, some mines in Shanxi were operating under a 240-day system, but many have returned to the 276-day policy. The execution of this policy varies across different mines [1][4]. - In the first half of 2025, approximately 90 million tons of raw coal production is expected to be lost due to cost issues, with 30 million tons from coking coal and 60 million tons from thermal coal [1][6]. 3. **Price Dynamics**: - Current coking coal prices range from 1,300 to 1,600 RMB per ton, with significant cost differences based on recovery rates. Mines with a recovery rate below 40% are struggling to remain profitable [1][8]. - The expected price range for coking coal is projected to return to 1,500-1,800 RMB per ton, while thermal coal prices should stabilize around 800 RMB per ton [3][18][19]. 4. **Impact of Superproduction Checks**: - Superproduction checks are anticipated to lead to a reduction in output, with an estimated total reduction of 90 million tons, including 30 million tons of coking coal and 60 million tons of thermal coal [7][26]. - The enforcement of these checks will depend on market supply and demand dynamics, with potential penalties for non-compliance [9][25]. 5. **Economic Challenges**: - Many coal enterprises with a recovery rate below 35% are facing losses, with around 70% of mines in Shanxi currently unprofitable. The uncertainty surrounding superproduction checks exacerbates the instability in the industry [12][27]. 6. **Future Supply and Demand**: - The future of coal prices is closely tied to supply security demands. The reliance on imports for both thermal and coking coal is expected to continue, with domestic production declining due to increased mining depth and operational costs [18][19]. 7. **Long-term Contract Pricing Mechanism**: - The pricing mechanism for long-term coal contracts is designed to stabilize prices, with adjustments based on market conditions. Current long-term contract prices are lagging behind market prices, indicating potential adjustments in the near future [23]. 8. **Operational Adjustments**: - Some mines have extended their operational hours to compensate for losses due to low prices, leading to significant increases in production despite overall market conditions [14][15]. Additional Important Insights - The overall coal production capacity in Shanxi is reported to be between 1.36 to 1.37 billion tons, with high-quality mines accounting for approximately 1.24 billion tons [1][10]. - The recovery rates for coking coal vary significantly, with only a small percentage of mines achieving rates above 40%, which are necessary for profitability [11][27]. - The impact of recent rainfall on coal supply has been minimal compared to the implications of superproduction checks, which are causing more significant operational adjustments [13]. This summary encapsulates the critical discussions and insights from the conference call regarding the coal industry in Shanxi Province, highlighting the challenges and future outlook for the sector.