[SMM Iron & Steel] Iranian Billet Shipment Disruptions Drive Regional Middle East Prices Higher

[Steel Billet] Today, export billet quotations were in the doldrums, with negotiable prices at $465-467/mt. Recently, the yuan has depreciated against the dollar, leading to a slight improvement in export advantage. Inquiries from outside China increased, but actual transactions remained moderate. Market rumors suggest steel billet orders have improved, with some cargoes flowing to domestic trade or exporter short-covering, while actual overseas demand still awaits the return of China's export price advantage. [Rebar] Affected by the exchange rate depreciation, export quotations for rebar edged down $2/mt today, with negotiable prices at $484-486/mt. According to feedback from market traders, inquiries from outside China increased slightly recently, but actual transactions remained moderate. At present, quotations from steel mills in South China continue to hold at high levels, with weak transactions. [Sheets & Plates] Affected by the afternoon plunge in Chinese futures, export prices for HRC and other sheets & plates edged down slightly on a day-on-day basis today, with HRC transaction prices at $491-500/mt. In recent days, market rumors have suggested that export orders are improving. According to SMM's verification, flows to the Middle East, although shipping has become somewhat smoother, still face high freight rates, and most clients expressed the need to wait and see; however, orders for sheets & plates and billets destined for Turkey have increased noticeably recently. It is understood that this may be due to fewer arrivals of other resources, leading to procurement shifting to China.

Today, DCE iron ore futures weakened, with the most-traded contract I2609 closing at 735 yuan/mt, down 1.08% from the previous trading session. Port spot prices fell 5–7 yuan/mt from the previous day.

[SMM HRC Daily Trading Volume] On June 25, the combined daily trading volume of hot-rolled coil (HRC) from sample enterprises in the four SMM cities (Shanghai, Lecong, Tianjin, Ningbo) totaled 11,740 mt, down 560 mt or 4.7% day-on-day, down 9.48% YoY (solar calendar), and down 38.34% YoY (lunar calendar).