【Flash | Lower Grade Cuts Kennecott Molybdenum Output 40% Despite Higher Throughput】

[Europe] European hot-rolled coil (HRC) steel prices remained generally stable. With downstream demand persistently sluggish, mills lacked leverage to push offer levels higher, leaving ex-works prices in both Northwest Europe and Italy largely unchanged. Viable market transaction levels were anchored within 740–750 EUR/tonne DDP (~829–840 USD/tonne), while trader quotes broadly hovered around 740–750 EUR/tonne EXW (~829–840 USD/tonne). Downstream margins have been virtually erased alongside elevated distributor inventories, leaving end-user consumption as a persistent source of downward price pressure. On imports, trade defense and tariff rate quota (TRQ) risks continue to mount. As delayed import arrivals surged into customs simultaneously, India's dedicated country-specific quota was rapidly exhausted last week, exposing substantial volumes of landed material to steep safeguard duties. Consequently, several European buyers have opted to withdraw customs clearance applications to defer entry until the January quota reset, while initial cost evaluations for orders targeting the April 2027 quota reset have already commenced. A softer euro against the US dollar in recent weeks has further elevated import landing costs, which, alongside escalating trade protectionism, has significantly narrowed the arbitrage window for foreign steel relative to domestic European material.

[Turkey] Over the past two weeks, elevated freight rates, seasonal weakness in construction demand, and conflict-induced logistical hurdles have constrained global billet trade, confining market activity to localized hubs. With Russian spot allocations effectively cut off, Turkish domestic mills seized bargaining leverage, raising prices and releasing volume to bridge the market shortfall. In pricing, Turkish billet import prices held steady at 520 USD/tonne CFR, while domestic ex-works prices held flat at 570 USD/tonne EXW. On supply and trade dynamics, Turkish buyers remain virtually unable to procure Russian spot cargoes or enforce delivery on long-dated contracts signed in July. Paralyzed Black Sea shipping lanes and worsening congestion at Baltic ports—driven by prioritized grain shipments—have forced major Russian suppliers to defer delivery schedules out to January. Against this backdrop, a major integrated mill in Turkey's Karabuk region opened order books, successfully allocating at least 100,000 tonnes of billet at 565–570 USD/tonne EXW to temporarily plug the supply void left by Russian origins. Overall, however, amid sluggish long steel export demand and ongoing downward corrections in local scrap and rebar prices, buyer acceptance of higher-priced material remains broadly restricted.

Chile’s National Geology and Mining Service ordered a temporary halt on October 13 at El Teniente’s North Crater waste dump and other areas exposed to avalanche or ground-movement risks, while stating that the order does not suspend the entire division. Amerigo Resources separately said its Minera Valle Central tailings operation was unaffected. El Teniente produced 1,483.1 metric tonnes of contained molybdenum in the first half of 2026, down 34.9% from a year earlier. No disruption to underground mining, concentrators or the molybdenum recovery circuit has been confirmed; SMM is not revising its forecast.