[SMM Steel] 7.16 SMM Global Steel Daily Report

[India] Mumbai HRC prices fell by around USD 3/tonne week on week to USD 602/tonne EXW, with trade offers at USD 571-611/tonne. Monsoon disruptions continued to weaken construction and infrastructure demand, while cautious restocking and competitive offers pressured the market. Near-term procurement is expected to remain need-based, keeping HRC prices under pressure."

Australia's BHP has approved a $900 million investment to develop the Ministers North high-grade iron ore deposit in Western Australia, which is scheduled to begin construction in July 2026 and expects its first ore by the 2028-29 financial year. Once fully ramped up, the satellite project is designed to deliver an annual production capacity of approximately 20 million metric tons (mt), directly supporting BHP's medium-term Western Australia Iron Ore (WAIO) target of exceeding 305 million mt per year. This development follows a record-breaking financial year ending June 30, 2026, where BHP's attributable iron ore output rose by 1% year-on-year to 264.7 million mt, while WAIO output remained strong at 256.9 million mt. For the 2026-27 financial year, the company forecasts total production between 260 million and 272 million mt. From a market perspective, the continuous expansion of designed capacity and the steady injection of new output from projects like Ministers North will significantly reinforce global iron ore supply volumes, potentially easing long-term structural supply constraints and heavily influencing international benchmark pricing trends.

The iron ore market saw narrow fluctuations today, with the DCE main contract I2609 eventually closing at 759.5 RMB/ton, unchanged from the previous day.