End-of-Day Market Summary PHCC – July 23, 2025
- Met Coal Junkie
- Jul 23
- 1 min read
End-of-Day Market Summary – July 23, 2025
Tone: Irrational Exuberance – Chinese Sentiment Ignores Fundamentals
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🔹 DCE Sep Hits Limit-Up Again – Now at RMB 1,135
For the second consecutive day, the DCE Sep coking coal contract hit limit-up, closing at RMB 1,135.
Market participants expect the rally to extend, driven not by coal fundamentals, but by macro optimism and policy speculation.
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🔹 Chinese Tier 1 Demand Begins to Surface, But No Cargoes Available
Physical demand from Chinese buyers for Tier 1 cargoes is finally emerging.
However, availability remains limited, especially at index-aligned levels or below $180 FOB.
This supply scarcity is supporting continued offer withdrawals and firm miner stances.
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🔹 Skepticism Grows Amid Sentiment-Driven Rally
Many traders and analysts express disbelief at the momentum in China, citing:
Lack of correlation with underlying steel or coke fundamentals
Weakness in the Indian and European steel sectors
An absence of genuine seaborne spot trades at high levels
A flurry of bearish commentary has emerged from market veterans who question the sustainability of the rally.
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🔹 China Is Trading Policy, Not Fundamentals
The prevailing sentiment is clear: "China is not trading fundamentals — it’s trading macro and policy."
With government rhetoric, curb narratives, and investor euphoria driving the DCE, the physical market is being dragged along rather than led by real demand.