MMi Daily Iron Ore Report (July 16)

A Turkish-owned vessel carrying steel billets from India to the United Arab Emirates partially sank near Bandar Abbas in the Strait of Hormuz following a reported structural failure. The ship was transporting a total cargo of around 43,000 tonnes, including billets, copper and industrial components, with market estimates suggesting that a significant portion of the billet cargo may be lost or unrecoverable. The vessel reportedly settled in shallow water, but salvage operations are expected to be extremely difficult due to the regional security situation. Insurance claims may also face delays because damage assessments in the conflict-affected area could be challenging. Market participants said the UAE may need to seek alternative short-lead-time billet supplies to cover the disrupted cargo.

[Indonesia] Indonesian SAE1008 wire rod offers held at USD 485/tonne FOB, below comparable Chinese offers of around USD 509/tonne FOB. Seasonal weakness across Southeast Asia continued to curb restocking, leaving transactions subdued despite Indonesia’s price advantage.

[Black Sea] The Black Sea steel billet market saw muted trading activity overall, with offers stabilizing at 480 USD/tonne FOB. Weighed down by holiday disruptions and sluggish demand, the pace of procurement in the Turkish market remained slow this week, with current Black Sea billet offers to Turkey maintained at 495–500 USD/tonne CFR. Notably, to maximize their share of duty-free quotas into the EU, some Russian mills have already proactively launched early production plans.