【SMM Iron & Steel】OECD: Excess global steel production capacity continues to weigh on markets

[SMM HRC Daily Trading Volume] On June 5, the combined daily HRC trading volume of sample enterprises from SMM's four cities (Shanghai, Lecong, Tianjin, Ningbo) totaled 13,560 mt, up 650 mt day-on-day (+4.7%), up 29.39% Gregorian YoY and 15.11% lunar YoY.

According to preliminary data from the Turkish Statistical Institute (TUIK), Turkey's hot rolled coil (HRC) imports in April 2026 reached 334,852 metric tons (mt), an increase of 8.2% month-on-month and 46.7% year-on-year, with the import value totaling $181.10 million (+9.2% m-o-m, +38.8% y-o-y). For the January-April 2026 period, total HRC imports amounted to 1,141,364 mt, up 8.1% year-on-year, while the total value rose 3.3% to $620.42 million. In terms of suppliers, Russia became the largest source with 248,889 mt (+9.2% y-o-y), followed by China, which saw a massive 39.6% drop to 229,800 mt, and Malaysia with 223,029 mt. The market impact indicates a clear structural rebalancing of Turkey's HRC supply chain; driven by recent trade defense measures targeting Chinese products, Turkish importers are actively diversifying their supply risks toward Russia, Malaysia, and other origins, demonstrating that while domestic demand remains resilient, procurement has become highly selective regarding price and origin advantages.

Indian state-run miner NMDC Limited has announced a massive investment plan of $5.22 billion over the next three years to almost double its iron ore production capacity to 100 million metric tons (mt) per year, up from the 52 million mt produced in the 2025-2026 fiscal year. The company will deploy around $626 million in the current fiscal year, with capital expenditures rising to $1.04 billion in each subsequent year. The strategic expansion also includes $208 million earmarked for the acquisition of overseas critical mineral assets, and a separate $313 million investment to construct a blending yard at the port of Vishakhapatnam for branded value-added iron ore products. The market impact highlights NMDC's aggressive vertical integration and capacity expansion to secure domestic raw material supply for India's booming crude steel sector. By venturing into overseas acquisitions and branded blended ores, NMDC is strategically positioning itself to reduce India's vulnerability to global supply chain shocks while fully capitalizing on the nation's rapid industrial consumption growth.