MMi Daily Iron Ore Report (July 16)

[Iran] Strait sinking and tightened sanctions cripple Iran's semi-finished exports Amid escalating geopolitical tensions, the effective closure of the Strait of Hormuz and a new round of US naval activity from July 14, Iran's semi-finished import/export market was quiet this week. A bulk carrier loaded with 43000 tonnes of billet collided and sank in the Strait of Hormuz, adding shipping uncertainty and leaving many vessels stuck at anchorage or cancelling voyages, forcing all seaborne export tenders to halt. Some mills tried offers at 410-415 USD/tonne FOB, but international buyers largely withdrew, with only small billet truck deals booked at the Afghan border. Meanwhile tight supply lifted domestic billet to 423 USD/tonne, sharply inverting domestic and export prices.

[SMM Hot-Rolled Coil Daily Trading Volume] On July 16, the total daily trading volume of hot-rolled coil from sample enterprises in four SMM cities (Shanghai, Lecong, Tianjin, Ningbo) reached 12,620 mt, down 280 mt, or 2.3%, day-on-day, and up 9.36% YoY on a calendar basis while down 0.94% YoY on a lunar calendar basis.