Construction steel social inventory: According to an SMM survey, total construction steel social inventory posted a slight build this period. As of August 13, 2026, SMM construction steel social inventory stood at 5.7557 million mt, up 50,000 mt WoW, an increase of 0.88%. During the survey period, Typhoon Dolphin struck, bringing heavy rainfall to some regions. Outdoor projects experienced severe waterlogging and construction progress was hindered. Compounded by transportation disruptions, end-use procurement demand declined, and inventory continued to build. Regional social inventory: Inventory performance across regions remained divergent. In east China, overall inventory shifted from decline to increase, mainly because typhoon-related heavy rainfall significantly constrained outdoor construction work and slowed the pace of end-use procurement. In northeast China, new maintenance at an individual blast furnace steel mill reduced supply, driving inventory from increase to decline. Inventory in southwest China also destocked slightly, mainly because the futures market improved somewhat during the survey period, market sentiment recovered in phases, and buying interest strengthened slightly. In addition, some steel mills in the region reduced production and overall material arrivals declined slightly; combined, these factors shifted inventory from increase to decline. Inventory performance in other regions was basically normal.

[SMM Coking Coal and Coke Daily Briefing] Coking coal market: The quotation for Linfen low-sulphur coking coal is 2,010 yuan/mt. Coking coal side, safety inspections remain stringent. Supply from most operating mines in Shanxi is restricted, and the frequency of online auctions closing at premiums has recently increased. Prices for some premium low-sulphur coking coal and fat coal have been raised slightly. Additionally, a sharp rise in coking coal futures significantly boosted market sentiment, leading to a clear recovery. In the near term, coking coal market may consolidate on a strong note. Coke market: The nationwide average price for dry-quenched quasi-first-grade metallurgical coke is 1,925 yuan/mt. News side, market rumors suggest that coke producers are planning to initiate the first round of coke price increases, tentatively scheduled to start on August 20. Supply side, coke producers are facing high costs, with most falling into losses. Those producers have voluntarily adopted production restrictions, resulting in a decline in total coke supply. Demand side, some blast furnaces that were under maintenance earlier are expected to resume production, which could increase hot metal output and thereby boost mills' rigid demand for coke. However, end-user steel demand is lukewarm and mills' own margins are weak, so overall purchase willingness remains cautious. In summary, spot coke prices are likely to consolidate on a strong note in the near term. [SMM Steel]

Hydnum Steel has secured a €150 million investment from COFIDES, Spain’s state-owned development finance institution, to build the Iberian Peninsula’s first eco-friendly steel plant in Puertollano, Ciudad Real. The plant will produce 2.7 million metric tons of steel sheet per year using EAF technology powered by renewable electricity and green hydrogen, thereby reducing emissions by up to 98% compared to conventional steelmaking processes using blast furnaces. This investment is part of a broader €1.5 billion financing package supported by Spain’s PERTE II decarbonization program. The program will help meet the demand for eco-friendly steel while reducing environmental impact.

The Italian government is preparing to launch a new tender in early September for the sale of the Acciaierie d'Italia steelworks (formerly Ilva) in Taranto, following evaluations of ongoing bids from potential investors. Industrial groups, including India's Jindal Steel, have submitted proposals targeting the complete acquisition of the complex's hot and cold production assets. The upcoming government summit at the Palazzo Chigi will decide the facility's future, weighing trade union demands against the necessary capital required to fully decarbonize and restart the idled blast furnaces.

This week, multiple news items on the raw material front successively boosted market sentiment, with finished steel prices rebounding from lows in phases and generally showing a bottoming-out trend. At the start of the week, the weak fundamentals of finished steel were hard to change, and ferrous metals prices had overshot to the bottom. Subsequently, however, coal mines in Shanxi were affected by rainfall, and circuit failures led to production suspensions at some mines, sentimentally driving ferrous metals prices to bottom out. Mid-week, there were rumors of a 48-hour strike at BHP, with limited short-term tangible impact, but sentiment...

Today, iron ore futures trended steadily. The most-traded DCE I2609 contract closed at 716.5 yuan/mt, up 0.35% from the previous trading session. Spot prices at Qingdao Port fell by an average of about 0-2 yuan/mt from the previous trading day. Trader activity was moderate, steel mills purchased as needed, and overall spot transactions were moderate. This week, iron ore showed a weak supply-demand trend. SMM's latest statistics show that total iron ore inventory at 35 major ports nationwide was 146.39 million mt, down 420,000 mt WoW. Meanwhile, daily average port pick-up volume edged down 45,000 mt to 3.095 million mt. On the supply side, affected by the pace of earlier shipments and weather factors, port arrivals edged down slightly. On the demand side, this week some blast furnaces entered maintenance, and SMM's daily average pig iron production fell to 240.58. Iron ore demand also declined. From a fundamental perspective, short-term iron ore prices may mainly consolidate. [SMM Steel]