According to the SMM survey, as of May 13, the operating rate of 50 electric furnace steel mills across China, which mainly produce building materials, was 37.16%, up 0.64% MoM from the previous period; the capacity utilisation rate was 38.63%, up 1.65% MoM; the daily average production of building materials was 86,000 mt, an increase of 3,700 mt MoM.

As of May 16, SMM data showed that the total inventory at 35 ports was 139.4 million mt, a decrease of 260,000 mt WoW. The daily average port pick-up volume of imported ore was 3.095 million mt, an increase of 76,000 mt WoW. Currently, port arrivals remain at a high level. In terms of port cargo pick-up, despite recent market rumors of production restrictions in the steel industry, due to the overall profitability of steel mills, enterprises have low willingness to voluntarily restrict production. Pig iron production remains at a relatively high level, providing some support for the demand for iron ore, and port pick-up volume is on an upward trend. Overall, port inventory has shown a slight decrease. Looking ahead to next week, SMM data indicates that pig iron production from blast furnaces at steel mills may decline, with demand support weakening. Coupled with the still high port arrivals, it is expected that the overall port inventory may increase slightly.

[SMM Steel Mill Guidance Price] Guidance prices for various stainless steel series from large domestic stainless steel mills on May 15

[SMM Stainless Steel Daily Review: Favourable Macro Front Continues to Boost Stainless Steel Spot Prices] SMM reported on May 15 that although SS futures contracts fluctuated downward today, the previous price rally had firmly pushed the price above the 13,100 yuan threshold, so today's correction did not spill over into the spot market, and stainless steel spot prices remained firm. Benefiting from the previous price rally, the transaction activity in the spot market significantly increased. SMM data released on the same day showed that the social inventory of stainless steel fell 0.85% WoW this week, confirming the market's destocking trend. However, the current high transaction activity in the market is mainly attributed to the price rally driven by the previous favourable macro front, which has collectively released the previously suppressed demand. The market is generally concerned that after short-term concentrated procurement, there is still significant uncertainty regarding the sustainability of downstream stainless steel consumption. In the futures market, the most-traded 2507 contract strengthened and rose. At 10:30 a.m., SS2507 was quoted at 13,050 yuan/mt, up 140 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 270-420 yuan/mt. In the spot market, the cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 8,050 yuan/mt; the average price of cold-rolled trimmed 304/2B coils was 13,225 yuan/mt in Wuxi and 13,200 yuan/mt in Foshan; the cold-rolled 316L/2B coils were quoted at 23,850 yuan/mt in Wuxi and 23,850 yuan/mt in Foshan; the hot-rolled 316L/NO.1 coils were quoted at 23,050 yuan/mt in both regions; Wuxi, Foshan...

Today, DCE iron ore futures fluctuated rangebound, weakening slightly in the afternoon. The most-traded contract I2509 eventually closed at 736.5, up 1.17% for the day. Traders sold goods according to market conditions. Some steel mills faced poor sales of finished products, leading to weakened purchase willingness.

[Brief Commentary on Domestic Iron Ore Market: Iron Ore Concentrates Prices in Tangshan Region May Have Some Room for Upside] Prices of iron ore concentrates in Tangshan region have slightly increased by 5-10 yuan, with the delivery-to-factory price (dry basis, tax included) of Fe66% iron ore concentrates at 945-950 yuan/mt. Currently, mines and beneficiation plants have a strong sentiment to stand firm on quotes, and there is a strong bullish sentiment in the short term.

According to SMM research, the amount of maintenance at steel mills producing construction steel increased slightly this week, with molten iron production peaking. More blast furnace maintenance is expected at steel mills in the future, which will affect construction steel production. The maintenance impact on construction steel output is 1.1138 million tons, an increase of 28,700 tons from last week on a week-on-week basis.

According to the SMM survey, as of May 14, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 88.63%, down 0.33 percentage point WoW. The capacity utilisation rate of blast furnaces was 90.45%, down 0.65 percentage point WoW. The daily average pig iron production of the sampled steel mills was 2.4403 million mt, down 17,600 mt WoW.