Latest Update in the SMM Steel Billet Market

Today, iron ore prices turned from weak to strong, with the main contract I2605 closing at 786.5 yuan/ton, up 0.5% from the previous trading day. Spot prices rose by 2–5 yuan/ton compared to the previous trading day.

[SMM Stainless Steel Daily Review] SS Futures Fluctuate Downward After Surging, Spot Stainless Steel Struggles to Catch Up Due to Demand Constraints: SMM January 22: SS futures showed a trend of retreating from highs. Although the night session opened with a continuation of the strong performance seen yesterday afternoon, prices later fluctuated downward. In the spot market, driven by the significant rise in SS futures yesterday, spot traders raised their quotes. However, against the backdrop of today's futures pullback, actual transaction performance was weak. Recently, social inventory of stainless steel has remained low, coupled with limited arrivals, restricting cargo pick-up for some futures-spot institutions' earlier orders, which pushed futures prices to stage a surge. But actual demand from downstream end-users remains sluggish, and high prices have made downstream players cautious and hesitant, causing goods to circulate mostly within the trade sector. The risk of a future pullback is gradually accumulating. The most-traded SS futures contract dropped back slightly. At 10:30 a.m., SS2603 was quoted at 14,590 yuan/mt, up 225 yuan/mt from the previous trading day. In Wuxi, the spot premium/discount for 304/2B was in the range of 80-180 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coil in Wuxi was 8,500 yuan/mt; for cold-rolled trimmed 304/2B coil, the average price in Wuxi was 14,550 yuan/mt, while in Foshan it was 14,450 yuan/mt; in Wuxi, cold-rolled 316L/2B coil was 26,500 yuan/mt, and in Foshan it was also 26,500 yuan/mt; for hot-rolled 316L/NO.1 coil, the Wuxi price was 25,600 yuan/mt; cold-rolled 430/2B coil in both Wuxi and Foshan was 7,800 yuan/mt. Recently, Indonesia's Energy and Mineral Resources...

According to the SMM survey, the operating rate of 50 construction steel-focused electric furnace steel mills nationwide was 42.4%, down 0.42% MoM; the capacity utilization rate was 43.24%, down 0.49% MoM; the daily average production of construction steel was 96,300 mt, down 1,100 mt MoM.

Today, the iron ore futures market experienced volatile and slightly weaker movements. The main contract I2605 closed at 784 yuan/ton, down 0.32% from the previous trading day. Spot prices also saw a slight decline of about 1–2 yuan/ton compared to the previous day.

[Domestic Iron Ore Brief: Iron Ore Concentrate Prices in Tangshan May Remain in the Doldrums] In recent days, the domestic ore market in Tangshan has remained generally stable, with ex-factory prices for 66% grade iron ore concentrates on a dry basis, including tax, at 895-900 yuan/mt. Producers have shown strong wait-and-see sentiment, with limited inquiries and offers in the market. Most transactions were for long-term contract orders, with a few driven by cash flow considerations.

[SMM Stainless Steel Daily Review] SS Futures Surge Sharply, Approaching 14,900 yuan/mt; Spot Stainless Steel Market Sees Sluggish Trading Ahead of Holiday SMM, January 21 – SS futures showed a pattern of surging upward. Although the night session and pre-noon period saw SS futures in the doldrums, the afternoon session witnessed a rapid surge driven by capital flows, breaking through the high since 2025 and briefly testing 14,895 yuan/mt. In the spot market, the morning was influenced by the weak performance of SS futures, coupled with sluggish downstream purchase willingness, as pre-holiday stockpiling demand failed to materialize; traders, facing year-end repayment pressure, showed increased willingness to sell, leading to a pullback in morning offers. However, boosted by the sharp rise in SS futures in the afternoon, spot traders raised their offers, though actual market transactions remained sluggish. The most-traded SS futures contract surged and strengthened. At 10:30 a.m., SS2603 was quoted at 14,365 yuan/mt, up 30 yuan/mt from the previous trading day. In Wuxi, the spot premiums/discounts for 304/2B were in the range of 5-205 yuan/mt. In the spot market, the average price for cold-rolled 201/2B coil in Wuxi was 8,450 yuan/mt; for cold-rolled mill-edge 304/2B coil, the average price in Wuxi was 14,300 yuan/mt, while in Foshan it was 14,200 yuan/mt; in Wuxi, cold-rolled 316L/2B coil was 26,300 yuan/mt, and in Foshan it was also 26,300 yuan/mt; for hot-rolled 316L/NO.1 coil, Wuxi reported 25,500 yuan/mt; cold-rolled 430/2B coil in both Wuxi and Foshan was 7,800 yuan/mt. Recently, Indonesian Energy and Mineral Resources...

According to the SMM survey, as of January 21, the blast furnace operating rate at the 242 steel mills surveyed by SMM was 85.58%, down 0.15 percentage points WoW.

[SMM Stainless Steel Daily Review] SS Futures Hold Up Well, Stainless Steel Pre-Holiday Stockpiling Sluggish SMM, Jan 20 - SS futures continued to hold up well. Although the market opened lower in the morning session, tracking the decline in SHFE nickel, the night session posted strong gains and the intraday losses were limited, maintaining a relatively firm tone overall, and finally closed at 14,345 yuan/mt. In the spot market, spot offers were raised in the morning, supported by the high SS futures, but downstream purchase willingness was weak, showing no pre-holiday stockpiling demand. Subsequently, as futures weakened, traders lowered their offers slightly again amid pressure to sell and collect payments before the holiday. In terms of 304 HRC, the supply was tight and prices were supported by steel mills’ list prices, performing slightly stronger than cold-rolled products. The most-traded SS futures contract held up well. At 10:30 am, the SS2603 contract was quoted at 14,336 yuan/mt, down 25 yuan/mt from the previous trading day. The spot premiums/discounts for 304/2B in Wuxi were in the range of 85-285 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coil in Wuxi was 8,450 yuan/mt. The average prices of cold-rolled 304/2B coil (trimmed) were 14,350 yuan/mt in Wuxi and 14,250 yuan/mt in Foshan. The prices of cold-rolled 316L/2B coil were 26,300 yuan/mt in both Wuxi and Foshan. The price of hot-rolled 316L/NO.1 coil in Wuxi was 25,500 yuan/mt. The prices of cold-rolled 430/2B coil in both Wuxi and Foshan were 7,800 yuan/mt. Recently, news from Indonesia’s Ministry of Energy and Mineral Resources indicated that although the approved RKAB quota...

Iron ore prices on the Dalian Commodity Exchange opened sharply lower today, followed by a narrow-range rebound. The main contract, I2605, ultimately closed at 789.5 yuan/ton, down 1% from the previous trading day.

Throughout the year, HRC prices experienced high volatility in Q1, a sharp decline and bottoming out in Q2, a strong rally driven by macro tailwinds such as "anti-involution" in Q3, followed by a retreat from highs, and finally ended with rangebound fluctuations in Q4.