【SMM Steel】Steel tariff hike sparks industry backlash as HS2 costs climb

Today Iron ore futures trended weaker with the most-traded contract I2609 closed at 803 yuan/mt, down 1.11% from the previous trading session. Port spot prices were 2-4 yuan higher than the previous day. Traders showed moderate enthusiasm in offering; steel mill purchases were mostly driven by rigid demand; overall spot trading sentiment was lukewarm.

SMM News Flash:  [HRC] Today, HRC export prices decreased by 3 USD/tonne compared to the previous month. Some large factories in the north still maintain a high quotation level of 530 USD/tonne because there are still some orders for special specifications, and large factories have no obvious willingness to reduce prices and ship. [India] Indian HRC SAE1006 offers to Vietnam declined sharply to $580/t CFR for June shipments as sellers lowered prices to remain competitive. Vietnam continued to be a key target market for Indian exporters amid weaker demand elsewhere. Market sentiment remained cautious, with Indian exports facing pressure from falling EU prices and uncertain recovery in the Middle East market.

[China Domestic Iron Ore Brief] This week, the pre-tax acceptance price for 64-grade alkaline concentrate (dry basis) at mines and beneficiation plants in Shandong was quoted at 909, up 5. Steel enterprises raised prices accordingly. Most miners maintained normal production, with a few experiencing slight inventory buildup, while most sold output as it was produced. Local steel mills currently mainly purchased as needed. Hebei steel mills had a better purchasing pace than local steel mills. Low-grade resources from small mills and traders saw relatively good transactions, and overall market transactions were moderate. However, iron ore futures showed a relatively weak trend recently.