Latest Update in the SMM Steel Billet Market

Today the most-traded iron ore contract I2605 continued to fluctuate upward, closing at 768 yuan/mt, up 1.25% from the previous working day. Traders actively sold goods, while steel mills cautiously waited and purchased as needed.

[Domestic Iron Ore Brief Review: Iron Ore Concentrate Prices in West Liaoning May Rebound Slightly] The domestic ore market in west Liaoning has recently seen relatively stable iron ore concentrate prices. The ex-factory prices for Fe66% iron ore concentrates on a wet basis, excluding tax, are 730-740 yuan/mt. The recent inspections by the National Security Bureau in the local area have affected production and transportation at some mines and beneficiation plants.

On December 16, 2025, multiple steel mills in Yunnan Province issued announcements regarding price adjustments for rebar

Today, DCE iron ore prices trended stronger, with the most-traded contract I2605 closing at 761 yuan, up 1.06% from the previous working day. Spot prices rose 3–5 yuan/mt from the previous day.

[Domestic Iron Ore Brief: Weak Supply and Demand, Iron Ore Concentrate Prices in Tangshan Region May Remain in the Doldrums] Iron ore concentrate prices in the Tangshan region are relatively stable, with 66-grade iron ore concentrate priced at 980-990 yuan/mt. Currently, the Level 2 environmental protection alert is in effect, leading to varying degrees of restrictions on production at steel mills and mines. Both supply and demand have decreased, the pace of vehicle transport has slowed down, and overall supply remains tight.

Last week, China's export offers continued to decline amid fading expectations for macro policy support, falling costs of raw materials like coking coal, and short-term uncertainties brought by the new export license policy. By the end of last week, China's HRC export offers were at $457-462/mt; steel billet export offers were at $434-442/mt. Domestic buying interest tapered off, as some rushed to expedite shipments due to concerns over export licenses, while most adopted a wait-and-see stance. Regular export traders mostly showed mediocre performance, still quoting normally, but remained doubtful about the implementation of subsequent policies. Therefore, short-term order-taking is expected to have pullback room, but long-term impacts still depend on policy implementation.