SMM daily comment on imported iron ore market (Aug 17)

[SMM Steel Exports Data Interpretation] Customs data shows that China's steel exports in August 2026 reached 10.155 million mt, up both MoM and YoY, consistent with the recovery in SMM's leading indicator of steel export orders—July SMM orders rose 6.5% MoM, with both long steel and sheets & plates improving, which materialized in August exports as expected. The SMM survey indicates that the main reasons supporting the order recovery are: first, restocking demand was released, supported by downstream overseas manufacturing sectors such as home appliance stockpiling in Q3 and expectations of price rises; second, low-priced resources remain attractive to price-sensitive emerging markets, with inquiries from markets such as Türkiye and Pakistan showing moderate performance by destination; meanwhile, Middle East disruptions and blocked Persian Gulf shipping routes this year drove exports to emerging markets in Africa and South America up both YoY and MoM, with the incremental demand effectively underpinning overall orders.

During the survey period (September 1-September 7), the operating rate of rebar rolling lines in Central China remained flat, the capacity utilization rate edged down, the wire rod operating rate held steady, and the capacity utilization rate edged up.