[SMM Hot-Rolled Coil Daily Trading] Spot Cargo Trading Volume Changed Narrowly

Ukrainian mining and steel group Metinvest reported its Q1 2026 operational results, showing pig iron production rose 18% year-on-year to 476,000 metric tons (mt). However, crude steel production saw a marginal decline of 1% to 494,000 mt. Notably, iron ore concentrate production surged by 91% year-on-year to 4.86 million mt as the company maximized utilization of its mining assets for export. The disparity between rising pig iron and stagnant steel output reflects a strategic focus on exporting semi-finished products and raw materials to the EU market. This increased availability of Ukrainian iron ore and merchant pig iron provides a crucial supply buffer for European electric arc furnace operators amidst global scrap shortages.

India’s iron ore imports declined by 11% year-on-year in April 2026, falling to 0.41 million metric tons (mt) from 0.46 million mt in the previous year. This drop follows a record-high import year in 2025 and is attributed to increased domestic mining output and a strategic shift by coastal steel plants toward local ores to mitigate high sea-borne freight costs. Despite the import decline, India’s total domestic iron ore production is projected to remain strong to support its expanding crude steel capacity. The reduction in Indian import appetite may slightly ease the demand pressure on high-grade Australian and Brazilian fines in the spot market.

The Italian steel distributors association, Assofermet Acciai, reports that the domestic market is facing severe headwinds characterized by sluggish consumption in the construction and manufacturing sectors. High energy costs and geopolitical uncertainties related to shipping disruptions have led to cautious buying behavior, with distributors maintaining lean inventory levels. The association noted that regional price volatility is being exacerbated by the phased implementation of EU trade measures. This weak demand environment in Italy, a key European steel hub, suggests a bearish short-term outlook for flat products, potentially forcing regional mills to consider further production cuts to balance the market.