[SMM Iron & Steel] Kametstal Completes Major Overhaul of Converter No. 2

Today, the most-traded HRC contract drifted lower, closing at 3,283 at the end of the session, with an intraday decline of 0.33%. Spot HRC prices remained largely steady, edging down in some markets, while spot cold-rolled prices held stable for now. In terms of supply, HRC production increased by 7,700 mt WoW this period, with further increases expected. Demand side, end-users remained in the off-season, and the overall market atmosphere was relatively sluggish. Cost side, coke's 10th round of price increases is about to be initiated, and hot metal production fell by 4,700 mt WoW this week, weakening cost-side support somewhat but not yet causing it to collapse. Looking ahead, imbalances in sheets & plates continue to accumulate. Inventory increased by 179,500 mt WoW this week and may enter a sustained buildup channel subsequently. Fundamental support will remain weak going forward, but futures have already reached a relatively low level and will be in a phase of consolidating at lows in the short term. Going forward, close attention should be paid to steel mill maintenance to assess whether cost support can be sustained.

Indian steelmaker JSW Steel plans to inject over US$500 million into its US operations to modernise its facilities in Mingo Junction, Ohio, and Baytown, Texas, attributing this investment climate to the Trump administration’s policies. In Ohio, its US$165 million project has introduced vacuum degassing units and advanced slab continuous casting machines, enabling the domestic production of 12-inch steel slabs and thereby eliminating reliance on imports from countries such as Brazil. Meanwhile, the Baytown steel plate and pipe mill is undergoing a US$110 million modernisation programme, with production expected to commence on 1 October 2026.

The EU implemented a new steel import quota system on July 1, slashing Taiwan's galvanized product allocation by roughly 70% from around 400,000 tonnes to just over 130,000 tonnes. This severely impacts major domestic producers like Yieh Phui, Sheng Yu, and Prosperity Tieh. Lacking FTAs or reciprocal mechanisms, Taiwanese mills face fierce external price competition and rising domestic import threats, as displaced steel from Asian peers facing similar cuts may flood Taiwan. To mitigate losses, manufacturers plan to redirect shipments to non-EU markets such as the UK, Canada, and the US. Meanwhile, mills are pursuing product upgrades and urging the government to implement CNS product certifications to curb import risks.