[SMM Steel] India domestic steel prices continue to rise

Recently, Centinela, a core Antofagasta mine, faced severe labor challenges. On September 28, its Minera Esperanza and Distrito Centinela unions voted 98.73% in favor of a strike over compensation discrepancies, rejecting management's contract offer. As an important associated molybdenum source, Centinela's H1 2026 molybdenum output fell ~17.6% year-on-year to 1,400 tonnes. The strike vote threatens further supply stability. While production continues pending mediation results, the potential impact on operations and long-term project progress requires close monitoring.

Iron ore futures were weaker today. The DCE most-traded I2701 contract settled at 699 yuan/mt, down 0.78% from the previous session. In the spot market, traders were reluctant to offer and mills stayed on the sidelines. Spot trading was thin, with Qingdao port prices down 0-3 yuan/mt.