Data: SHFE, DCE market movement (Aug 04)

Liaoxi domestic ore market prices edge down. Currently, the wet basis, tax-exclusive EXW price for 66% grade iron ore concentrates is 700-710 yuan/mt. Buyers, risk-averse, mostly wait and see the market outlook; some ore processors' sentiment is easing. Local steel mills' losses are deepening. Based on cost control considerations, some intend to lower procurement offers. Intermediaries' profit margins are further under pressure. Their willingness to operate is low, which is clearly suppressing ore prices.

[EU] As Europe enters the summer holiday season, trading activity in the domestic hot-rolled coil (HRC) market remains sluggish, with prices continuing to trend within a narrow range. Notably, Italian HRC offers edged up to 830 USD/tonne EXW. Meanwhile, a northern steelmaker announced yesterday a four-week trial restart of its direct-drive sheet production line. On the import front, market activity plunged into a lull following transactions finalized in Southern Europe last week. Turkish HRC was quoted at 640–650 USD/tonne CFR Italy (including duty), standing roughly on par with Indian offers.

[Turkey] The Turkish domestic rebar market exhibited significant regional divergence recently, as price gains in the Marmara region effectively offset declines in the South, keeping overall Turkish rebar offers steady at 575–580 USD/tonne EXW (excl. VAT). With some mainstream mills concentrating their efforts on preparing for upcoming export shipments, domestic spot supply has tightened. This has led to shortages in certain specifications, allowing mills to take advantage of the situation and firmly maintain their prices. On the export front, given that overseas buyers previously demonstrated low acceptance of higher price levels, export offers continued to hold stable at 575 USD/tonne FOB.