MMi Daily Iron Ore Report (August 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.

[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.

[India] According to Pondrik Sandeep, Secretary of India's Ministry of Steel, India's steel consumption rose from 77 million mt in fiscal 2014-15 to 152 million mt in fiscal 2024-25. Speaking at the India AI Impact Summit 2026 in New Delhi, Pondrik said India's crude steel capacity is expected to reach 300 million mt in fiscal 2030-31 and further increase to 400 million mt in fiscal 2035-36. The summit also brought together steel producers, iron ore miners, and AI technology providers to discuss AI applications in the steel industry chain and potential cooperation opportunities.