Latest Update in the China Finished Steel Market

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on July 27, 2021

Henan is still under the disastrous impact of the floods, and typhoon “In-Fa” has swept many regions in China, including Shaoxing, Zhoushan, Hangzhou, Ningbo, Shanghai, and Suzhou. Metal industry, as well as a wide range of other industries across the country, have been affected by the typhoon. SMM has investigated and analysed the impact on the metal industries.

According to data tracked by SMM, 80 ships arrived at domestic main ports from July 18-24. Arrivals of cargoes are estimated to stand at 11.98 million mt, down 650,000 mt from the previous week, and a decrease of 2.98 million mt from the same period last year.

According to National Development and Reform Commission (NDRC), in May, the national crude steel production was 99.45 million mt, up 6.6% year on year, and the growth rate increased by 2.4 percentage points; steel production increased by 7.9%, an increase of 1.7 percentage points. Coke production increased by 0.3%, which declined 3.2% in the same period last year. Ferroalloy production increased by 10.6%, which declined 3.5% in the same period last year. Steel exports were 5.27 million mt (according the customs), down 2.7 million mt than the previous month; imports were 1.21 million mt, an increase of 40,000 tons over the previous month.

DCE iron ore futures market picked up over last Friday, but quotations in the physical port stock market declined by 15-20yuan/mt. Some traders adjusted their quotations up when DCE iron ore futures market vibrated upward, and PBF was closed at 1390yuan/mt, with price hike of 25yuan/mt over last Friday.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on July 26, 2021

Typhoon "Fireworks" landed strongly in Jiangsu and Zhejiang, and Zhejiang was first hit by storms.

The National Development and Reform Commission (NDRC) and the National Energy Administration mentioned in a recently released official document that the innovative energy storage industry shall transform from early commercialization to scaled development by 2025, which will play a significant role in realising carbon peak and carbon neutrality.