Data: SHFE, DCE market movement (May 28)

[SMM Steel] German plant maker SMS Group completed the modernization of CELSA Barcelona’s medium section mill at its Castellbisbal site in Spain. The upgrade included replacing one of the 25-year-old CCS® mill stands and installing advanced electrical and automation systems to improve rolling force and operational efficiency. SMS said hot commissioning finished two days ahead of schedule, with regular production resuming immediately after a successful 700 mt rolling campaign. The mill’s annual capacity has increased from 500,000 mt initially to around 1 million mt following multiple upgrades, supporting higher-quality long steel production for the construction sector.

The iron ore futures market on the Dalian Exchange showed weak and volatile trading today. The main contract I2609 finally closed at 780.5 yuan/ton, down 0.06% from the previous trading session.

The most-traded HRC contract closed at 3,365, up 0.12%; spot market side, HRC prices in most cities were stable with slight increases, while cold galvanized prices remained stable. In the short term, bearish expectations on raw material supply and downstream demand have been partially digested. Combined with the stimulus from coke price hike news, ferrous metals are expected to move sideways in the short term, making it difficult to break through the upper or lower bounds of the range. HRC fundamentals side, inventory is unlikely to see a trend of inventory buildup before mid-June, and the most-traded HRC contract is expected to continue moving sideways within the range of 3,330-3,450.