Data: SHFE, DCE market movement (Aug 19)

The domestic ore market in Liaodong remained relatively stable. Steel mills’ tendering pace was slow, and most traders were closed and staying on the sidelines; a few offered low prices only as needed. However, amid no inventory buildup at beneficiation plants and under funding pressure, low prices were mostly hard to accept. Both sides were locked in a stalemate, and spot supply in the market has tightened temporarily, strengthening support for ore prices. Still, most steel mills purchased at stable prices, with some areas still showing a desire to push for lower prices. In addition, the price spread between domestic and imported ore has not narrowed significantly, and steel mills show an even stronger preference for imported ore.

Iron ore futures traded firmer today. The DCE most-active contract I2701 settled at RMB 712/mt, up 0.78% from the previous trading day. Spot prices at Qingdao Port declined by RMB 2-3/mt. Traders were reasonably active in offering, but mill purchases remained largely restocking on a just-in-need basis, leaving overall spot transactions fairly subdued.

[Flat products] Today HRC and other flat-product export prices rose by 1-2 USD/tonne day on day, with HRC transactions concentrated in the 485-488 USD/tonne range. The sustained rally on the domestic futures board lifted sentiment at the export end, overseas purchasing demand that had been suppressed earlier recovered somewhat, and enquiry activity in the market picked up, with demand concentrated in coated and galvanised grades. [Billet] Today billet export FOB prices were steady, with Jiangyin port offers at 448-454 USD/tonne. According to market feedback, overseas buyers feel little urgency to purchase and mostly stay on the sidelines, leaving export prices under continued pressure, while domestic mills still face undiminished per-tonne production cost pressure that leaves little room for further concessions, making deals harder to conclude. [Rebar] Rebar export offers at Tianjin port rose by 2 USD/tonne in this morning's session, then were marked down as the futures board retreated in the afternoon, leaving overall transactions at 473-478 USD/tonne. According to exporters, market enquiries were on the quiet side today; with the yuan appreciating, overseas buyers showed limited willingness to accept higher prices and export order bookings were weak.