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.

[Coke enterprises maintain relatively high operating rates, but shipping pressure increases] From the market perspective, coke enterprises' production profits are moderate, and their enthusiasm for production is high, keeping coke supply at a high level. The shipping pace of some coke enterprises has slowed down, resulting in certain inventory pressure. On the demand side, steel mills' coke inventory is at a medium-to-high level, with weak restocking demand. Additionally, with the arrival of the off-season, the number of blast furnace maintenance operations is gradually increasing. Some steel mills have slowed down their purchasing pace, mainly purchasing as needed. In summary, coke enterprises' operating rates remain at a relatively high level, but shipping pressure has increased.

[Brief Commentary on Domestic Iron Ore: Iron Ore Concentrates Prices in West Liaoning May Have Room for Further Increase] Domestic iron ore concentrates prices in west Liaoning have been relatively stable. The ex-factory prices (excluding tax) for 66% grade iron ore concentrates on a wet basis are 710-715 yuan/mt. According to mines and beneficiation plants, the local land and resources bureau and relevant emergency departments have conducted inspections again, causing certain obstacles to the production of individual mines and beneficiation plants.

[SMM Stainless Steel Daily Review: Fading Favourable Macro Front Leads Market Back to Demand Fundamentals, Stainless Steel Transactions Weaken, Prices Adjust] SMM reported on May 16 that stainless steel prices strengthened overall this week. Early in the week, positive news of a consensus reached in the Sino-US tariff negotiations rapidly boosted market confidence, leading to a significant strengthening of stainless steel futures prices, which were swiftly followed by gains in the spot market. Driven by the market psychology of "rush to buy amid continuous price rise and hold back amid price downturn," the previously suppressed pessimistic sentiment quickly dissipated, significantly enhancing market activity and leading to a noticeable improvement in transactions, which drove down social inventory of stainless steel. However, as time passed, by Friday of this week, the effect of the favourable macro front gradually weakened. After the downstream end-users' periodic procurement needs were met, market transactions once again turned weak, and stainless steel prices also experienced a slight correction. In the futures market, the most-traded contract 2507 weakened. At 10:30 a.m., SS2507 was quoted at 12,995 yuan/mt, down 70 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 325 to 525 yuan/mt. In the spot market, cold-rolled 201/2B coils in both Wuxi and Foshan were quoted at 8,050 yuan/mt. For cold-rolled trimmed 304/2B coils, the average price in Wuxi was 13,275 yuan/mt, and in Foshan, it was 13,225 yuan/mt. Cold-rolled 316L/2B coils were priced at 23,870 yuan/mt in Wuxi and 23,875 yuan/mt in Foshan. Hot-rolled 316L/NO.1 coils were quoted at 23,100 yuan/mt in both regions. Cold-rolled 430/2B coils were priced at 7,500 yuan/mt in both Wuxi and Foshan. Recently, adjustments in Sino-US tariff policies and the US...

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.