MMi Daily Iron Ore Report (May 21)

[SMM Hot-Rolled Coil Daily Trading] On May 21, the combined daily trading volume of hot-rolled coil from SMM's sample enterprises across four cities (Shanghai, Lecong, Tianjin, Ningbo) totaled 13,760 mt, up 160 mt DoD (+1.2%), up 30.06% YoY (solar calendar), and up 26.70% YoY (lunar calendar).

Today, the most-traded HRC contract rose first then fell, closing at 3,394 at the end of the session, down 0.59% intraday. HRC spot prices mostly declined 10-20 yuan/mt today, with some markets remaining stable. In terms of supply, weekly hot-rolled production was 3.1739 million mt, up 19,700 mt WoW, with supply pressure relatively neutral. Demand side, morning transactions were moderate, while afternoon futures decline weakened market transactions. Cost side, after macro front disturbances eased, short-term cost support was limited. Looking ahead, overall HRC inventory will continue to decline, with total inventory down 161,300 mt WoW this week. The supply-demand imbalance showed divergence, with inventory in east China and northern regions continuing to decline while ...