Latest Update in the China Finished Steel Market

The iron ore inventories across 35 ports tracked by SMM totaled 129.29 million mt, a decrease of 330,000 mt from the previous week, but up 14.24 million mt year-on-year. The arrivals of imported iron ore at ports increased, but the efficiency of port deliveries has been restricted, driving down the port inventory.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on September 17, 2021

SMM data showed that HRC stocks across social warehouses and steel makers fell 31,300 mt or 0.85% on the week, a decrease of 9.28% than a year ago, to 3.66 million mt in the week ended September 16.

DCE iron ore futures market continued falling trends and I2201 recorded new low of 660yuan/mt. Quotations in the physical port stock market declined by 30-35yuan/mt in the morning, some traders tended to clinch deals while others showed little enthusiasm in offering prices given the higher costs.

Inventories of rebar across Chinese steel makers and social warehouses stood at 10.28 million mt as of September 16, down 418,100 mt or 3.90% from a week earlier. Stocks are down 1.06 million mt or 9.3% from a year earlier.

The total crude steel output from January to July increased significantly year-on-year in the above mentioned regions. Guangxi, Guangdong, and Jiangsu issued notices to implement the dual control of energy consumption, and the total crude steel output in 2021 is stimulated to be no higher than that in 2020.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on September 16, 2021

DCE iron ore futures market continued dropping tendency and I2201 recorded new low since from last May to 682.5yuan/mt. The physical port stock prices plummeted further and PBF in Shandong market was closed at 880yuan/mt, with price drop of 20-30yuan/mt.