Latest Update in the SMM Steel Billet Market

[SMM Steel Mill Guidance Price] Guidance Prices for Different Series of Stainless Steel at Large Domestic Steel Mills on June 18

[SMM Stainless Steel Daily Review: Sluggish Stainless Steel Consumption Persists, Prices in the Doldrums] SMM reported on June 18 that today, although the SS futures market briefly held up well after the opening of the daytime session, it remained in a state of fluctuation at lows overall. Trading in the spot market remained sluggish, with traders generally lacking confidence in the market outlook. Some holders, under pressure to sell, occasionally offered low prices for certain specifications. Downstream buyers maintained a cautious wait-and-see attitude, focusing primarily on restocking based on immediate needs. Recently, prices of high-grade NPI and high-carbon ferrochrome have continued to decline, weakening the cost support for stainless steel. Consequently, the overall market continues to exhibit a weak performance. In the futures market, the most-traded 2508 contract weakened. At 10:30 a.m., SS2508 was quoted at 12,490 yuan/mt, down 10 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 380 to 680 yuan/mt. In the spot market, the cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 7,750 yuan/mt; the cold-rolled trimmed 304/2B coils had an average price of 12,850 yuan/mt in Wuxi and the same in Foshan; the cold-rolled 316L/2B coils were priced at 24,000 yuan/mt in Wuxi and the same in Foshan; the hot-rolled 316L/NO.1 coils were quoted at 23,350 yuan/mt in both regions; and the cold-rolled 430/2B coils were both priced at 7,500 yuan/mt in Wuxi and Foshan. Currently, the stainless steel market is mired in the traditional consumption off-season, with downstream demand remaining sluggish. Despite enterprises generally facing losses, some steel mills have implemented production cuts. However, due to the large production base in the early stage, current supply remains at...

Today, DCE iron ore futures fluctuated rangebound on the weaker side, with the most-traded contract I2509 closing at 695.5, down 0.5% for the day. Traders sold goods in line with market conditions, with some traders having abundant spot resources selling at lower prices. Steel mills purchased as needed, and the market transaction atmosphere was moderate.

[SMM Rebar Daily Review: Wait-and-See Sentiment Continues to Intensify, Short-Term Trend of Being in the Doldrums Remains Unchanged] Today, rebar futures operated in a volatile manner, closing at 2,986, up 0.13% from the previous trading day. In terms of spot prices, spot rebar quotes in most regions dropped slightly in the morning, with declines of 10-20 yuan/mt. Market trading sentiment was weak, and overall trading performance was mediocre throughout the day.

[Domestic Iron Ore Brief Review: Frequent Accidents, Iron Ore Concentrates Prices in West Liaoning May Continue to Be in the Doldrums] Domestic iron ore concentrates prices in west Liaoning have fluctuated downward, with the ex-factory prices (66% grade, wet basis, tax not included) decreasing by 10-15 yuan, now quoted at 680-690 yuan/mt. According to SMM, a mining accident occurred recently in Jianping, Chaoyang, resulting in casualties. Local provincial leaders will conduct an inspection in the area.

During the survey period (June 10-17), the spot price of rebar fluctuated, with overall weak trading activity. Amid escalating geopolitical risks overseas, the futures market for industrial commodities experienced amplified volatility. However, there was no significant improvement in the fundamentals of the ferrous metals series. Market trading enthusiasm remained lackluster, with apparent rebar demand declining and electric furnace mills' profits continuously compressed. This week, three additional electric furnace mills halted production for maintenance, while two others shortened their operating hours. Overall, the national electric furnace operating rate this week was 30.98%, down 3.66% WoW.

Today, DCE iron ore futures pulled back from highs, with the most-traded contract I2509 closing at 699, down 0.07% for the day. Traders sold goods in line with market conditions, while steel mills adopted a wait-and-see attitude and purchased as needed. The market transaction atmosphere was average. The mainstream transaction prices of PB fines in Shandong were around 715 yuan/mt, down 5 yuan/mt from yesterday's prices. The transaction prices of PB fines in Tangshan were around 730 yuan/mt, down 5 yuan/mt from yesterday's prices.