Iron ore futures plunged today, with the most-traded contract I2601 closing at 766 yuan, down 2.67% from the previous trading day.

[SMM Stainless Steel Daily Review: SS Futures Strengthened on News Flow, Spot Inquiry and Trading Activity Recovered] SMM, September 1 — SS futures demonstrated strong upward momentum. Despite a relatively weak performance during Friday's night session, the contract surged rapidly after the morning opening, driven by news of turmoil in Indonesia and a decline in the US dollar index amid expectations of a US Fed rate cut, approaching the 13,000 yuan/mt threshold by the close. On the spot market, although reports emerged in the morning that a major steel mill had restricted coil sales, downstream end-users remained cautious toward high-priced material. While spot price increases lagged behind the futures rally, market inquiries and procurement activity showed signs of recovery, with trading outcomes deemed favorable. Futures side, the most-traded contract SS2510 fluctuated within a range. At 10:30 am, SS2510 was quoted at 12,875 yuan/mt, up 45 yuan/mt from the previous trading day. In Wuxi, spot premiums/discounts for 304/2B stood at 295-495 yuan/mt. Spot market details: - Wuxi 201/2B cold-rolled coil averaged 8,050 yuan/mt. - 304/2B cold-rolled coil (trimmed): Wuxi and Foshan both averaged 13,100 yuan/mt. - 316L/2B cold-rolled coil: Wuxi and Foshan both quoted at 25,675 yuan/mt. - 316L/NO.1 hot-rolled coil: both regions reported 25,100 yuan/mt. - 430/2B cold-rolled coil: Wuxi and Foshan both traded at 7,450 yuan/mt. Following last week’s rebound in SS futures, this week…

[Domestic Iron Ore Brief: Iron Ore Concentrate Prices in Shandong May Fluctuate] This week, the 64-grade alkaline concentrate (dry basis, tax-excluded, ex-mine acceptance) in the region rose by 14 yuan to 849 yuan. Steel mills adjusted prices accordingly, while miners maintained normal production, ensuring stable supply. Steel mills in Hebei and local areas actively purchased, leaving major mines with zero inventory. Small plants and traders executed previous orders, and some steel mills implemented production restrictions on sintering.

Malaysia’s rebar market has recently remained firm, with prices showing a steady-to-strong trend. This round of price support is primarily driven by a significant rise in production costs combined with a tightening supply structure, jointly pushing up overall market levels.

[Domestic Iron Ore Brief: Iron Ore Concentrates Prices in East Liaoning May Fluctuate at Highs] Today, the domestic ore market in East Liaoning remained mostly stable, with slight price increases in some areas. Local mine operations continued at low levels, compounded by consecutive rainy days over the past two days, further tightening ore supply. Consequently, beneficiation plants strengthened their high-price stance. With low inventory and high purchase costs, traders temporarily refrained from offering quantities.

Today, the most-traded iron ore futures contract I2601 continued to hold up well, closing at 787.5 yuan/mt, up 0.77% from yesterday. Traders' willingness to sell remained moderate, while steel mills' wait-and-see sentiment intensified, leading to a decline in the transaction sentiment index.

【SMM Survey on Billet-Using Mills' Operating Rates】 According to the SMM survey, as of August 29, the operating rate of steel mills using externally purchased billets primarily producing construction steel stood at 23.71%, up 6.85 percentage points MoM from July-end and up 1.46 percentage points YoY.