[SMM Steel Mill Guidance Price] Guidance Prices for Different Series of Stainless Steel at Large Domestic Steel Mills on June 4

[SMM Daily Review of Stainless Steel: Stainless Steel Market in Stalemate, Prices Remain Stable] SMM reported on June 4 that today, driven by the overall strength of ferrous metals series futures, the SS futures market rose in tandem. However, the spot market reacted indifferently, with transactions mainly driven by just-in-time procurement. The overall trading atmosphere remained sluggish, and traders lacked confidence in the market outlook. Despite the current low prices of stainless steel and the limited room for further price declines due to news of production cuts at steel mills, downstream consumer demand is significantly weak, and the market is filled with wait-and-see sentiment. It is difficult to see significant improvements in market activity in the short term. In the futures market, the most-traded 2507 contract fluctuated upward. At 10:30 a.m., SS2507 was quoted at 12,660 yuan/mt, up 10 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 470 to 670 yuan/mt. In the spot market, the cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 7,950 yuan/mt; the cold-rolled trimmed 304/2B coils had an average price of 13,100 yuan/mt in Wuxi and 13,100 yuan/mt in Foshan; the cold-rolled 316L/2B coils were priced at 24,050 yuan/mt in Wuxi and 24,050 yuan/mt in Foshan; the hot-rolled 316L/NO.1 coils were quoted at 23,350 yuan/mt in both regions; and the cold-rolled 430/2B coils were both priced at 7,500 yuan/mt in Wuxi and Foshan. Currently, the stainless steel market has fully entered the traditional consumption off-season, with sustained weakness in downstream demand. Although stainless steel production has declined since March, it still remains at historically high levels, resulting in significant market supply...

Today, DCE iron ore futures rebounded slightly, with the most-traded contract I2509 closing at 704.5, up 1.37% for the day. Traders showed moderate enthusiasm for selling, while some steel mills locked in profits and increased procurement.

According to the SMM survey, as of June 3, the operating rate of 50 electric furnace steel mills across China, which mainly produce building materials, stood at 38.42%, down 0.72% WoW from the previous period. The capacity utilisation rate was 39.68%, up 0.42% WoW. The daily average production of building materials was 88,400 mt, an increase of 900 mt WoW.

According to SMM's tracking survey data, 11 blast furnaces underwent maintenance in May, resulting in a daily reduction of 54,300 mt of pig iron. Meanwhile, 5 blast furnaces resumed production, leading to a daily increase of 19,900 mt of pig iron production. SMM survey data indicates that blast furnace maintenance in May resulted in a net reduction of 4.2803 million mt of pig iron production, a decrease of 360,300 mt MoM from April. The daily average pig iron production at month-end in May decreased by 32,200 mt compared to the end of April. Based on SMM's estimated daily average pig iron production, on June 25, the daily average pig iron production of the sample steel mills was approximately 2.42 million mt, showing a slight decrease MoM from the end of May.

According to SMM's survey, the maintenance impact volume of construction steel this week (May 31 - June 6) saw a slight increase. Most steel mills continued their maintenance from last week, and some steel mills added new rolling line maintenance plans. The maintenance impact volume of construction steel was 1.1984 million tons, a month - on - month increase of 0.041 million tons.

[SMM Steel Mill Guidance Price] Guidance Prices for Different Series of Stainless Steel at Large Domestic Steel Mills on June 3

[SMM Stainless Steel Daily Review: Agents and Traders Lower Prices During Dragon Boat Festival Holiday, Weakness Persists in Stainless Steel Market] SMM reported on June 3 that today, the SS futures market continued its weak trend, with prices briefly falling below the 12,600 yuan/mt threshold. During the Dragon Boat Festival holiday, news emerged that an agent of a steel mill in South China had lowered the prices of 304 cold-rolled and hot-rolled stainless steel, with the price of 304 hot-rolled stainless steel quickly following suit. Despite the 304 cold-rolled stainless steel price remaining higher than the previous mainstream transaction prices after the adjustment, and market quotes temporarily holding steady, this news severely dampened market confidence. Consequently, on the first trading day after the Dragon Boat Festival holiday, market transactions continued their sluggish trend, with overall performance remaining weak. In the futures market, the most-traded 2507 contract was in the doldrums. At 10:30 a.m., SS2507 was quoted at 12,700 yuan/mt, down 10 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 470-670 yuan/mt. In the spot market, cold-rolled 201/2B coils in both Wuxi and Foshan were quoted at 7,950 yuan/mt; cold-rolled trimmed 304/2B coils had an average price of 13,100 yuan/mt in Wuxi and 13,100 yuan/mt in Foshan; cold-rolled 316L/2B coils were priced at 24,050 yuan/mt in Wuxi and 24,050 yuan/mt in Foshan; hot-rolled 316L/NO.1 coils were quoted at 23,350 yuan/mt in both regions; and cold-rolled 430/2B coils were priced at 7,500 yuan/mt in both Wuxi and Foshan. Currently, the stainless steel market has fully entered the traditional consumption off-season, with...

[Brief Commentary on Domestic Iron Ore Market: Iron Ore Concentrates Prices in West Liaoning May Continue to Decline] The market trading atmosphere in west Liaoning has remained weak for consecutive periods. The ex-factory prices of local iron ore concentrates with a grade of 66 are 690-700 yuan/mt. Most traders are inquiring cautiously, with low purchasing activity. Only a few traders, in urgent need of restocking, are purchasing small quantities at appropriate prices. Currently, on the supply side, the scarcity of local ROM resources has not improved. Most ore processors are considering cost support and are not shipping their products amid the market downturn, instead choosing to wait and see.