Steel Futures Daily | July 23, 2025 | Coking Coal Hits Limit-Up Again, Market Driven by Cost Pressures

🔥 Market Recap:
Yesterday, coking coal surged to the daily limit for the third time, driven mainly by the National Energy Administration’s crackdown on coal mine overproduction. The entire black commodity sector is now largely pushed by rising coking coal and coke costs, with the market heavily following news and expectations.

📈 Key Market Insights:

1. Price Status:
   • Prices are currently near a high-level phase.
   • Futures buying is not recommended at this stage.
   • For spot buyers, it’s safer to take small positions with quick in-and-out trades to minimize losses.
2. Short Position Strategy:
   • The optimal timing for shorting hasn’t arrived yet; patience is advised.
   • If considering shorts, iron ore is the preferred target.
   • Suggested position building zone: 830–850 yuan/ton, using a reverse pyramid approach.
   • Example for 100,000 yuan capital:
     • 1 lot at 830
     • 2 lots at 840
     • 3 lots at 850
   • Stop-loss should be set at 860 to control risk.
3. For Long Position Holders:
   • Quickly raise your take-profit levels.
   • Follow the trend and secure profits once your targets are met.
4. For Short Position Holders:
   • Consider reducing or closing your positions.
   • Stay calm and wait for better opportunities ahead.

💡 Summary:
The current market is volatile and heavily news-driven. Conservative trading and risk management are key — avoid chasing prices blindly and adapt quickly to changing conditions.

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📌 Daily insights provided by LangZo Steel. For reprints, please credit LangZo Steel.