Data: SHFE, DCE market movement (Apr 13)

In the short term, total inventory is expected to decline at a pace of approximately -1.5% before the Labour Day holiday, with YoY elevated inventory levels remaining the norm. Attention should be paid to whether the destocking pace over the next three weeks meets expectations. In addition, as Iran-US peace talks have made no substantive progress, coupled with the unsettled long-term iron ore contract negotiations, external factors have once again heightened market uncertainty. Combined with the recent surge in semi-finished products export orders, downside support for steel remains strong. The most-traded HRC contract is expected to move sideways within the 3,260-3,320 range in the short term.

The Kametstal steel mill in Ukraine has successfully completed the first major phase of its 2026 production equipment overhaul program by restoring Converter No. 2 in the converter shop. The critical maintenance involved replacing 860 tons of worn refractory lining and restoring the steel structures responsible for stabilizing the converter body. This comprehensive upgrade, which included repairs to the gas exhaust system and boiler drum separator, aims to ensure the uninterrupted and stable operation of the steelmaking process.