Data: SHFE, DCE market movement (Aug 05)

[Flat Products] Today some HRC and other flat-product export prices rose 1 USD/tonne day on day, with HRC transaction prices at 480-483 USD/tonne. Enquiries and concluded business have diverged somewhat of late: in deep-sea markets, with low domestic prices, enquiries and deals increased compared with the previous period; in nearby markets, however, competitors' offers were also low, leaving no clear price advantage and trading still sluggish. [Billet] Today billet export FOB prices were steady, with Jiangyin port offers at 448-455 USD/tonne. According to feedback, exporters have limited room to lower offers further, while overseas buyers showed little enthusiasm for enquiries and business was ordinary. [Rebar] Today rebar export offers at Tianjin port were steady, with overall transaction prices at 474-480 USD/tonne. According to exporters, overseas enquiries improved slightly today, but current offers remain some distance from the levels buyers will actually accept, and overall trading was relatively limited.

The domestic ore market in Liaodong was generally stable today. Buyers were cautious in their inquiries, purchasing only for immediate needs, but some sellers held back from selling and held prices firm, reluctant to accept offers below their psychological expectations. Both sides were in a stalemate and stood on the sidelines, with trading thin. Demand side, steel mills were mostly incurring losses and had a strong desire to bargain down prices. Combined with maintenance at some mills, demand weakened in phases, exerting strong restraint on ore prices. However, ROM supply remained tight, and in the absence of notable positive external drivers, local ore processors had no production resumption plans in the near term.