Latest Update in the SMM Steel Billet Market

Today, the DCE iron ore contract fluctuated at weak bias as the main contract I2605 finally closed at 753, down 0.92% from the previous working day.

[Domestic iron ore review: Iron ore concentrate prices in Shandong region may remain in the doldrums] In Shandong region, the tax-exclusive offer for 64% grade alkaline powder dry base dropped by 15 yuan to 874 yuan. Steel enterprises synchronized price cuts. Some miners resumed production after earlier maintenance, leading to a recovery in supply. However, a few miners experienced decreased production due to raw material shortages. Currently, most mines and beneficiation plants maintain normal production. Entering next week, some may undergo annual maintenance.

After market close, the Ministry of Commerce issued policies regarding the management of steel product export licenses, confirming market rumors from the past two days. This move exceeded general expectations, as previous speculation about such measures had often been dismissed as "crying wolf." Now, the policy has indeed arrived. What is the actual situation? Let’s examine SMM’s analysis.

Today, the DCE iron prices fluctuated within a narrow range, with the main contract I2605 closing at 760.5, down 0.33% compared to the previous trading day. Traders adjusted their sales strategies based on market conditions.

According to an SMM survey, SMM’s large-caliber HRC inventory in Ningbo stood at 327,900 mt as of 12.10, up 3,900 mt WoW.This week HRC prices fluctuated downward; spot prices fell 40-90 yuan/mt WoW, and overall market sentiment stayed weak. By the 12.12 afternoon close, the most-traded HRC 2605 contract settled at 3,232 yuan/mt.

[Domestic Iron Ore Brief: East Liaoning Iron Ore Concentrates Prices May Be in the Doldrums] The domestic ore market in East Liaoning remained generally stable. Influenced by the weak market trend in the Tangshan area, the current ex-factory price for 66% grade iron ore concentrates on a wet basis, excluding tax, is reported at 740-750 yuan/mt. Traders' risk aversion sentiment has intensified, with most adopting a cautious wait-and-see approach, and inquiries to drive down prices are evident.