Data: SHFE, DCE market movement (Aug 04)

On August 4 China's steel export prices were broadly steady. Flat-product export prices held flat day on day, with HRC transactions at 479-483 USD/tonne; domestic futures had corrected too quickly of late and overseas enquiries increased, but actual bid levels remained low and concluded business was limited. Billet export FOB prices were steady, with Jiangyin port offers at 447-452 USD/tonne, as fierce competition kept export offers under pressure while overseas buyers showed little urgency and mostly stayed on the sidelines. Rebar export offers at Tianjin port were steady with transactions at 474-480 USD/tonne; enquiries improved slightly today but overall volumes did not pick up markedly, and some South China mills kept long-product export offers high with little business done.

[SMM Hot Rolled Coil Daily Trading Volume] On August 4, the combined daily trading volume of hot-rolled coil for sample enterprises in SMM’s four cities (Shanghai, Lecong, Tianjin, Ningbo) was 10,220 mt, up 320 mt, or 3.0% DoD, down 14.55% YoY (solar calendar) and down 12.50% YoY (lunar calendar).

Liaoxi domestic ore market prices edge down. Currently, the wet basis, tax-exclusive EXW price for 66% grade iron ore concentrates is 700-710 yuan/mt. Buyers, risk-averse, mostly wait and see the market outlook; some ore processors' sentiment is easing. Local steel mills' losses are deepening. Based on cost control considerations, some intend to lower procurement offers. Intermediaries' profit margins are further under pressure. Their willingness to operate is low, which is clearly suppressing ore prices.