MMi Daily Iron Ore Report (June 21)

[SMM Stainless Steel Daily Review] SS Futures Moved Sideways, Stainless Steel Spot Trading Was Mediocre and Struggled to Rise On April 9, SMM reported that SS futures continued to move sideways. The US and Iran temporarily ceased fire, but geopolitical conflicts had not truly subsided, and uncertainty at the macro perspective remained elevated. SS futures failed to extend the previous rally and mainly moved sideways, closing at 14,320 yuan/mt as of the midday session. In the spot market, affected by the pause in the futures rally, the stainless steel spot market still saw some inquiry activity, but actual transactions were still dominated by low-priced sources; traders attempted to slightly raise their quotes, but actual transaction gains were limited. The most-traded SS futures contract moved sideways. At 10:15 AM, the most-traded SS2605 futures contract was quoted at 14,290 yuan/mt, up 25 yuan/mt from the previous trading day. Spot premiums for 304/2B in the Wuxi area were in the range of 180-380 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coils in Wuxi fell by 100 yuan/mt; for cold-rolled trimmed-edge 304/2B coils, the average price in Wuxi rose by 50 yuan/mt, while the average price in Foshan remained stable; cold-rolled 316L/2B coils in the Wuxi area fell by 200 yuan/mt; hot-rolled 316L/NO.1 coils were quoted flat in Wuxi; cold-rolled 430/2B coils in both Wuxi and Foshan remained stable. The stainless steel market is currently in the traditional peak consumption season of "Golden March and Silver April." Downstream demand fundamentals have recovered compared to the earlier period, with end-user procurement continuing at a just-needed pace, and the overall trading volume was sufficient to hold quotes firm for basic market vitality. However, affected by macro news disturbances and futures fluctuations, downstream end-user clients still...

Social inventory of HRC was 3.4389 million mt this week, down 41,400 mt from the previous week, -1.19% WoW, +34.23% YoY, and +21.54% YoY on a lunar calendar basis. Mill inventory of HRC was 1.1205 million mt this week, down 41,800 mt from the previous week, -3.60% WoW, +0.83% YoY, and -0.71% YoY on a lunar calendar basis. Total HRC inventory was 4.5594 million mt this week, down 83,300 mt from the previous week, -1.79% WoW, +24.12% YoY, and +15.20% YoY on a lunar calendar basis.

【SMM Steel】Fives signed a contract with Hyundai Steel and POSCO to supply coil finishing lines for a new $5.82bn low-carbon steel plant in Louisiana. The facility will produce 2.7 Mt/y, with 70% for auto-grade applications. Hyundai Steel aims to strengthen the local auto steel supply chain in North America. Fives will provide coil handling solutions. The plant deepens its presence in the US auto steel market.