The price of QHD increased by RMB23/t in July, compared to June. However, the price has fluctuated twice in the past month, suggesting a bearish market outlook after summer. Key economic indicators show that China's economic activity remained weak in June. High steel mill operating rates ensured demand for coking coal. Supply disruptions and speculative activities exacerbated the decline in coal inventory in mines, leading to a price increase of RMB270/t in July. We believe that the long-term price trend will be driven by demand, as downstream industries benefit from support policies in the second half, rather than temporary supply disruptions.