Entering August, the record-high temperatures felt in July gradually dropped, leading us to reduce our estimation of thermal coal demand. Persistently strong restocking by crude steel producers underpinned metallurgical coal demand. Although the government has allowed new supply to enter the market, we are yet to see a material rise in output. Ongoing safety inspections and coal management tickets are mainly to blame. The Ministry of Environmental Protection also updated the '2+26 policy' and we expect it will impact 65 Mtpa of coal demand.