MMi Daily Iron Ore Report (December 4)

The output of stainless steel has increased since November as the power rationing has been eased. However, downstream producers’ consumption thinned, suppressing stainless steel prices. Stainless steel mills suffered losses as prices of raw material like ferrochrome and NPI were at high levels, in spite of correction. Especially, #200-series stainless steel prices have declined 2,900 yuan/mt or 22.3% since early November.

Typhoon "Fireworks" landed strongly in Jiangsu and Zhejiang, and Zhejiang was first hit by storms.

Stainless steel output continued to increase in July, hitting a new year high.

Stainless steel consumption has improved significantly month-on-month in July, but remained weaker than the same period last year. Inventories extended declines, suggesting robust sales in major markets, but remained higher compared to July 2019, according to the recent SMM survey.

China’s imports and exports of stainless steel declined sharply in the first two months of 2020, due to the outbreak of the COVID-19 pandemic in the country. About 149,060 mt of stainless steel was imported to China in the January-February period, down 38.56% from the same period last year, while exports dropped 11.92% to 442,180 mt.

China produced 29.4 million mt of crude stainless steel in 2019, up 10.08% from 2018, according to data from the Stainless Steel Council of China Special Steel Enterprises Association.

Industrial activity levels outside of central China continues to improve as workers return from quarantine periods and logistics pressures eased.

Transportation activity in coastal provinces has started to return to near normal levels in recent days, but that inland remains more restricted

Stainless steel consumption in Europe is better in 2017 compared to years past, SMM understands.

#1 Insulated Copper Wire 85% Recovery prices remained unchanged at CNY 27,950 per MT upon comparison with the previous day.