Latest Update in the SMM Finished Steel Market

DCE iron ore futures declined by 0.36 % today, the main contract closed at 966. The steel mills are not active to purchase.The overall trading sentiment of the market is general.

From January to October 2023, the EU's iron ore imports fell again by 11.2% YoY to 60.3 million mt.

Benchmark Minerals Intelligence (BMI), a subsidiary of Fitch Solutions, raised its average iron ore price forecast for 2024 to $120/mt from $100/mt, mainly due to a rebound in market confidence.

In order to stabilise market operation, Dalian Commodity Exchange (DCE) always adhered to its main responsibilities and main business, and kept taking “zero-tolerance” approach to strict supervision market and tight investigation of violations and illegal activities to protect legitimate rights and interests of traders.

DCE iron ore futures declined by 1.14 % today, the main contract closed at 958. The steel mills are not active to purchase.The overall trading sentiment of the market is general.

As finished product prices obviously underperformed raw material prices, profits of steel mills continued to narrow last week. Looking forward, coke price is still expected to rise.

The operating rate of BF steel mills was down 0.15% WoW at 90.63% as of November 29, SMM survey showed.

Core point of view: In spite of profit erosions, steel mills decreased pig iron output at a slow pace last week, fuelling rigid coke demand.