MMi Daily Iron Ore Report (May 19)

[SMM Steel] Asian HRC prices remained largely stable despite weaker Chinese macroeconomic data and lower iron ore prices. Market sentiment stayed cautious as weak domestic demand in China pressured spot sales and buyers adopted a wait-and-see approach. Chinese mills were reluctant to release new offers amid uncertain price trends. Meanwhile, Europe has largely suspended imported HRC purchases ahead of new safeguard measures effective July 1 and the upcoming summer holiday season.

[SMM Steel] Ukraine’s steel industry warned that the EU’s planned steel safeguard revisions could significantly reduce the country’s export revenues and damage its wartime economy. Under the new measures effective from July 1, the EU plans to cut steel import quotas by 47% and impose a 50% tariff on out-of-quota volumes. Ukrainian steelmakers said the restrictions could sharply limit access to their largest export market, as Ukraine exported around 2.65 million mt of steel to the EU last year. Industry sources estimated the proposed quota reductions could cut export volumes by around 70% and result in up to €1 billion in lost export revenues.

[SMM Steel] Italy’s crude steel output increased by 7.2% y-o-y to 1.93 million mt in April 2026, reaching the highest monthly level in the past four years, according to Federacciai. January-April steel production rose 2.9% y-o-y to 7.6 million mt. Long steel output remained the main growth driver, rising 12.3% y-o-y in April to 1.2 million mt, while January-April long product production increased 10.5% y-o-y to 4.6 million mt. In contrast, flat steel output continued weakening, falling 9.3% y-o-y in April to 743,000 mt, reflecting softer demand conditions in the European flat steel market.