MMi Daily Iron Ore Report (February 25)

This week, social HRC inventory reached 3.4004 million mt, up 721,200 mt from the pre-holiday period, an increase of 26.92% WoW, up 16.92% YoY, and up 30.87% on a lunar calendar basis. This week, mill HRC inventory stood at 1.2362 million mt, up 153,000 mt from the pre-holiday period, an increase of 14.13% WoW, up 4.41% YoY, and up 4.90% on a lunar calendar basis. This week, total HRC inventory amounted to 4.6366 million mt, up 874,300 mt from the pre-holiday period, an increase of 23.24% WoW, up 13.30% YoY, and up 22.77% on a lunar calendar basis.

[SMM Stainless Steel Daily Review] SS Futures Continue to Strengthen and Test Higher Levels, Stainless Steel Spot Prices Follow Suit but Trading Volume Pulls Back SMM February 26: SS futures continued to hold up well. Although SHFE nickel weakened during the day, SS futures tested support during the night session and maintained a relatively strong performance overall, closing at 14,275 yuan/mt before the noon break. In the spot market, driven by the sustained strength of SS futures, market confidence in the peak season of "Golden March, Silver April" remained firm, leading to further increases in offers. However, due to continuously rising offers and the pullback in SHFE nickel today, trading volume today pulled back compared to the previous two days. The most-traded SS futures contract strengthened and tested higher levels. At 10:30 a.m., the SS2604 contract was quoted at 14,315 yuan/mt, up 80 yuan/mt from the previous trading day. In Wuxi, the spot premiums/discounts for 304/2B were in the range of 155-355 yuan/mt. In the spot market, the average price for cold-rolled 201/2B coil in Wuxi was 8,500 yuan/mt; for cold-rolled mill-edge 304/2B coil, the average price in Wuxi was 14,400 yuan/mt, and in Foshan, 14,400 yuan/mt; for cold-rolled 316L/2B coil in Wuxi, the price was 27,425 yuan/mt, and in Foshan, 27,425 yuan/mt; for hot-rolled 316L/NO.1 coil in Wuxi, the price was 26,400 yuan/mt; for cold-rolled 430/2B coil in both Wuxi and Foshan, the price was 7,800 yuan/mt. During the Chinese New Year holiday, the domestic stainless steel market entered a seasonal lull, with the SHFE also closed for the holiday. Spot trading was suspended, and prices showed no significant fluctuations. Overall, before the holiday, the market exhibited strong futures, stagnant spot trading, weak supply and demand, and inventory buildup...

HRC prices fluctuated upward today, with the most-traded contract settling at 3,236 yuan/mt at the close, up 1.19% intraday. In the spot market, HRC offers in major cities nationwide rose by 10-30 yuan/mt, though trading activity remained moderate, while cold-rolled and galvanized prices held steady. Intraday market rumors circulated frequently: some steel mills received notices requiring voluntary emission reductions during the Two Sessions period from March 4 to 11 (blast furnace output cut by 30%), with mills asked to submit their own plans; simultaneously, rumors emerged about relaxation of Shanghai property policies. Driven by multiple news factors, futures saw significant gains, and market trading sentiment improved accordingly.