Pig Iron Production Remained Stable at High Levels, Iron Ore Decline Slowed Down [SMM Imported Ore Daily Brief]

[Domestic Iron Ore Brief] The trading atmosphere in the western Liaoning domestic ore market was cautious. Local iron ore concentrates prices edged down by 5-10 yuan, with the current ex-factory price of 66-grade iron ore concentrates on a wet basis and tax-exclusive at 730-740 yuan/mt. Local iron ore concentrates resources were relatively tight, and most mines held back from selling. Steel mills recently saw profit margins shrink, with domestic iron ore procurement mostly on an as-needed basis and a relatively strong desire to bargain down prices. Overall, market transactions were relatively sluggish. Combined with the recent weak trend in iron ore futures, this may weigh on domestic ore prices.

[SMM Steel] Asian HRC prices remained largely stable despite weaker Chinese macroeconomic data and lower iron ore prices. Market sentiment stayed cautious as weak domestic demand in China pressured spot sales and buyers adopted a wait-and-see approach. Chinese mills were reluctant to release new offers amid uncertain price trends. Meanwhile, Europe has largely suspended imported HRC purchases ahead of new safeguard measures effective July 1 and the upcoming summer holiday season.

[SMM Steel] Ukraine’s steel industry warned that the EU’s planned steel safeguard revisions could significantly reduce the country’s export revenues and damage its wartime economy. Under the new measures effective from July 1, the EU plans to cut steel import quotas by 47% and impose a 50% tariff on out-of-quota volumes. Ukrainian steelmakers said the restrictions could sharply limit access to their largest export market, as Ukraine exported around 2.65 million mt of steel to the EU last year. Industry sources estimated the proposed quota reductions could cut export volumes by around 70% and result in up to €1 billion in lost export revenues.