MMi Daily Iron Ore Report (September 12)

SMM estimates that China’s production of electrolytic manganese to rebound 41.89% from February to 93,000 mt in March, as the daily average supply has exceeded 3,600 mt as of March 19. The increase in supply will likely keep near-term manganese prices subdued as demand in China and overseas has not recovered considerably.

China has increased export tax rebates on almost 1,500 products, including stainless steel strip and wire, to offset the fallout from the fast-spreading COVID-19 pandemic. The Ministry of Finance said on Tuesday that rebate on 1,084 products, including porcelain sanitary ware, would increase to a rate of 13% from Thursday March 20, while another 380 products would see the rebate rise to a rate of 9%.

Linyi Yichen Nickel Chrome Alloy’s stainless steel new materials project, which is designed with an annualised capacity of 500,000 mt, has commenced construction in February and the phased I capacity will commission by end-October. 

China’s imports of stainless steel rose 55.33% from Jun to 73,900 mt in Jul

Inventory depletion is expected in Sep when demand recovers

China exported 360,000 mt of stainless steel to the EU in 2018, accounting for 9% of the total

Stocks shrank some 16,000 mt from mid-April, to stand at 264,800 mt as of Apr 26

Baosteel Desheng in south China is likely to suspend its #200 products from mid-October

China produced 13.64 million mt of stainless crude steel in the first half of 2018, up 13.23% from the same period last year

Production at a stainless steel mill in east China resumed over the weekend