[SMM Iron & Steel] India's SAIL and NMDC Explore Coking Coal Asset Acquisition in Russia

The DCE iron ore market was slightly stronger in the morning session and rallied at the close today. The most-traded I2609 contract settled at 771.5 yuan/mt, up 1.51% from the previous trading day.

[SMM Hot-Rolled Coil Daily Trading Volume] On June 10, the total daily HRC trading volume of sample enterprises in four cities surveyed by SMM (Shanghai, Lecong, Tianjin, Ningbo) was 14,250 mt, up 1,250 mt day-on-day, or +9.9%, up 9.45% YoY on the solar calendar, and up 34.69% YoY on the lunar calendar.

Today, HRC’s the most-traded contract fluctuated downward, closing at 3,380 yuan/mt, up 0.6% from the previous trading day. Spot sheets & plates prices rose 10-20 yuan/mt from the previous trading day. In terms of supply, this week, the impact from maintenance on hot rolling totaled 74,100 mt, down 156,400 mt WoW. Next week’s impact from maintenance on hot rolling is expected at 23,100 mt, down 51,000 mt WoW. Supply pressure sustained its uptrend this month. Demand side, futures rebounded near the close, improving market trading from the previous trading day. Trading was mostly at low prices, with some buyers taking advantage of the spot-futures price spread to purchase on dips. Cost side, near the close today, market rumors suggested that a major mine signaled a halt on certifying blended super special fines, driving iron ore futures to surge. However, subsequent rumors refuted this, causing futures to fluctuate sharply. For coking coal and coke, the spot market saw tight supply-demand dynamics, and they are expected to recover some losses in the short term. Overall, according to the regional HRC inventory data released today, except for South China, most regions maintained destocking. The supply-demand imbalance remains not significant, and they are expected to continue their sideways trend in the short term, with attention on disruptions in the raw material supply.