[SMM Steel Market Morning News] Mainstream Steel Mills Propose the Eleventh Round of Coke Price Cuts Again

★Macro★

01★★★

US February CPI Up 2.8% YoY, Below Market Expectations

US February CPI rose 2.8% YoY, marking the lowest level since November last year, compared to an estimate of 2.9% and a previous value of 3%. On a MoM basis, February CPI increased by 0.2%, against an estimate of 0.3% and a prior value of 0.5%.

US February core CPI rose 3.1% YoY, the lowest since April 2021, compared to an estimate of 3.2% and a previous value of 3.3%. On a MoM basis, core CPI increased by 0.2%, against an estimate of 0.3% and a prior value of 0.4%.

★Industry and Downstream★

01 ★★★  

[SMM Blast Furnace Operating Rate] Blast Furnaces Resume Production as Planned, Pig Iron Production Rises Slightly

According to an SMM survey, as of March 12, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 86.61%, up 0.28 percentage points WoW. The capacity utilisation rate of blast furnaces was 87.76%, up 0.15 percentage points WoW. The daily average pig iron production of the sample steel mills was 2.3719 million mt, up 7,900 mt WoW.

During this period, four blast furnaces underwent maintenance, while nine resumed production. The blast furnaces under maintenance were mainly located in Hebei and Shanghai, while those resuming production were concentrated in Hebei. Following the conclusion of an important meeting, steel mills in Hebei that had temporarily halted production due to the meeting gradually resumed operations, leading to a slight increase in pig iron production. Looking ahead to the next period, SMM statistics indicate that one blast furnace is scheduled for maintenance, while five are expected to resume production, primarily in Shaanxi and Hebei. Currently, steel mill profits have slightly improved, finished product shipments are moderate, and overall production enthusiasm at steel mills has improved compared to earlier periods, with pig iron production showing an upward trend.

02★★★

Mainstream Steel Mills Propose the 11th Round of Coke Price Cuts

On March 12, mainstream steel mills proposed the 11th round of coke price cuts, reducing wet quenched coke prices by 50 yuan/mt and coke dry quenching prices by 55 yuan/mt, effective from March 14.

03★★★

South Korea Issues Affirmative Preliminary Ruling on Anti-Dumping of Hot-Rolled Carbon or Alloy Steel Medium-Thickness Plates from China

The Korea Trade Commission announced an affirmative preliminary ruling on anti-dumping of hot-rolled carbon or alloy steel medium-thickness plates originating from China, recommending the Ministry of Economy and Finance impose provisional anti-dumping duties on the involved enterprises.

04★★★

Mexico Launches Anti-Dumping Investigation on Hot-Rolled Steel from China and Vietnam

The Mexican Ministry of Economy announced the launch of an anti-dumping investigation on hot-rolled steel originating from China and Vietnam.

★Other Hot Topics★

⭕[Canadian Finance Minister: 25% Retaliatory Tariff on Certain US Goods Effective March 13]The Canadian Finance Minister announced today that, starting March 13 local time, Canada will impose a 25% retaliatory tariff on US goods worth 29.8 billion Canadian dollars. The tariffs include 12.6 billion Canadian dollars worth of steel products, 3 billion Canadian dollars worth of aluminum products, and 14.2 billion Canadian dollars worth of other US goods.

⭕[Agency: Total Planned Land Supply Area Nationwide Down 35.5% YoY in January-February, Resilience Evident in Tier-1 Cities]CRIC Real Estate reported that in January-February 2025, the total planned land supply area nationwide decreased by 35.5% YoY, with land area down 37.5%, continuing the contraction trend since 2023. Preliminary land supply data indicate that the real estate supply side is undergoing a series of positive adjustments: Tier-1 and core Tier-2 cities are consolidating market confidence by optimizing land supply structures, while Tier-3 and Tier-4 cities are adopting contraction strategies to address inventory pressure, making the national land supply pace more efficient.

⭕In February 2025, Komatsu excavators in China recorded an average operating time of 56.8 hours, up 100.7% YoY but down 13.9% MoM.

⭕This week, Ningbo HRC large-sample inventory stood at 409,500 mt, up 100 mt WoW, an increase of 0.02%, with a lunar YoY increase of 11.95%.

⭕This week, Shenyang HRC inventory was 110,500 mt, down 2,500 mt WoW (-2.21%) and down 53,300 mt YoY (-32.54%).

⭕This week, Hangzhou inventory was 1.189 million mt, down 10,000 mt WoW (-0.83%).

⭕This week, Lecong HRC inventory was 102.63 mt, down 47,000 mt WoW (-4.38%), with a lunar YoY increase of 33,700 mt (+3.40%).

⭕As of March 12, this week, Guiyang construction material total inventory was 86,500 mt, down 16,500 mt WoW (-16.02%). Among them, rebar inventory was 57,500 mt, down 11,100 mt WoW, and wire rod inventory was 29,000 mt, down 5,400 mt WoW.

⭕As of March 12, this week, Xi'an construction material total inventory was 734,200 mt, down 30,800 mt WoW (-4.03%).

⭕As of March 11, 2025, Beijing construction material inventory was 830,100 mt, down 20,100 mt from March 4, a WoW decrease of 2.36%, mainly due to weak recent transactions and fluctuating arrivals, leading to a slight overall inventory decline.

⭕This week, Shanghai HRC inventory was 374,600 mt, up 23,900 mt WoW (+6.81%), with a solar YoY decrease of 14.18% and a lunar YoY decrease of 1.29%.