Tight Steel Scrap Supply Likely To Limit Downside Room Of Steel Prices

[Plate/HRC] Plate export prices ease, HRC deals at 488-495 USD/tonne On 10 July China's HRC and other plate export prices fell 1-2 USD/tonne day on day, with HRC export deals at 488-495 USD/tonne FOB. A recent slowdown in yuan appreciation pushed prices modestly lower during the week; overseas demand showed no clear improvement and export order-taking stayed quiet. [Billet] Export billet FOB steady at 459-462 USD/tonne FOB Jiangyin, order-taking weak On 10 July China's export billet FOB price held steady, quoted at 459-462 USD/tonne at Jiangyin port. According to market feedback, although there were inquiries, deal prices in some Southeast Asian import markets were about 10 USD/tonne below domestic offers; with limited room for concessions, mills' billet export order-taking remained unsatisfactory, with most order shipments in August-September. [Rebar] Export rebar prices little changed, typhoon slows southeast-coast shipments On 10 July, according to market feedback, export rebar prices have shown little movement recently with relatively limited room for negotiation; typhoon weather has slowed the pace of shipments from southeast coastal areas.

Today, the DCE iron ore futures trended weaker today, with contract I2609 closing at 751.5 yuan/mt, up 0.87% from the previous trading day. Port spot prices rose 2–5 yuan/mt from the prior trading day.

[SMM HRC Daily Transactions] On July 10, the total daily HRC trading volume among sample enterprises in SMM’s four cities (Shanghai, Lecong, Tianjin, Ningbo) was 12,450 mt, down 670 mt (-4.9%) day-on-day, down 18.76% YoY (Gregorian calendar), up 18.12% YoY (lunar calendar).