Ferrous Metals May Rebound Slightly Next Week [SMM Steel Industry Chain Weekly Report]
This week, ferrous metals mostly retreated after rapid rises, with only coking coal and coke standing out, briefly hitting the daily limit up at the open. Early in the week, the market was primarily characterized by coking coal and coke leading the gains across ferrous metals. A coal mine accident occurred in Shanxi over the previous weekend, strengthening market expectations of tighter supply driven by stricter subsequent regulatory oversight and increased production shutdowns at coal mines. Ferrous metals rebounded on cost support. However, some coal mines quickly resumed production afterward, and combined with the prospect of a US-Iran deal being reached, crude oil declines dragged iron ore prices lower, loosening cost support. Most products except coking coal and coke retreated from highs. In the latter half of the week, data on the five major steel products were released, showing continued inventory destocking but marginally weakening apparent demand, with supply-demand pressure rising somewhat. Spot market side, spot prices remained relatively firm this week, with the spot-futures price spreads for both hot-rolled coil and rebar widening, providing shipment opportunities for basis traders, while end-users continued to restock on a need-based, low-price approach...