Latest Update in the SMM Finished Steel Market

Iron ore futures on the Dalian Exchange traded sideways in the morning session today. Influenced by market news, prices saw a sharp decline in the afternoon. The main contract I2605 ultimately closed at 757, down 1.3% from the previous trading day.

From 2015 to the present, China's steel industry profits have undergone roller-coaster-like changes, mainly divided into three stages: deep losses and recovery (2015-2017): In 2015, the industry faced severe difficulties, with profit per metric ton of steel turning negative at one point.

Today, iron ore prices shifted from weak to strong, with the main contract I2605 closing at 769, up 1.85% from the previous trading day.

[Domestic Iron Ore Brief: Iron Ore Concentrate Prices in West Liaoning May Remain in the Doldrums] Iron ore concentrate prices in west Liaoning are relatively stable, with ex-factory prices for Fe66% iron ore concentrates on a wet basis, excluding tax, at 750-760 yuan/mt; currently, resources at mines and beneficiation plants remain relatively tight, providing some support to local iron ore concentrate prices; the National Security Administration is scheduled to conduct an inspection in the area recently.

[SMM Stainless Steel Daily Review: SS Futures Retreat After Rapid Rise, Stainless Steel Spot Inquiries Cool Down] SMM, December 9: SS futures showed a pattern of retreating after a rapid rise. In the morning, SS futures continued to strengthen and climbed further, reaching a high of 12,565 yuan/mt; in the afternoon, driven by a broad decline in metal futures, SS futures also retreated significantly, falling back to 12,500 yuan/mt by the close. In the spot market, in the morning, as SS futures continued to climb, stainless steel spot traders raised their offers, but downstream end-users had limited acceptance of high prices. In the afternoon, as SS futures pulled back noticeably, market caution intensified, and inquiries and transactions cooled further. The most-traded SS futures contract held up well. At 10:30 a.m., the SS2601 contract was quoted at 12,550 yuan/mt, up 25 yuan/mt from the previous trading day. In Wuxi, the spot premiums/discounts for 304/2B were in the range of 320-520 yuan/mt. In the spot market, the average price for cold-rolled 201/2B coil in Wuxi was 8,000 yuan/mt; for cold-rolled trimmed 304/2B coil, the average price in Wuxi was 12,800 yuan/mt, and in Foshan, 12,800 yuan/mt; for cold-rolled 316L/2B coil in Wuxi, the price was 23,775 yuan/mt, and in Foshan, 23,775 yuan/mt; for hot-rolled 316L/NO.1 coil in Wuxi, the price was 23,000 yuan/mt; for cold-rolled 430/2B coil, the price in both Wuxi and Foshan was 7,600 yuan/mt. Recently, against the backdrop of strengthening expectations for US Fed interest rate cuts, metal futures have generally held up well...

As of December 9, the operating rate of 50 major rebar electric furnace steel mills nationwide was 39.82%, up 0.72% WoW; the capacity utilization rate was 42.06%, up 0.46% ; average daily production of construction materials was 93,700 mt, up 1,000 mt.

Today, iron ore continued its weak and fluctuating trend. The main contract I2605 closed at 757.5, down 0.72% compared to the previous trading day.