According to SMM statistics, both mill and social inventories experienced varying degrees of buildup. Total building materials inventory reached 8.0193 million mt, up 226,600 mt or 2.91% MoM, signaling the emergence of an inventory inflection point.

[Billet] Today, export billet quotations remained stable. Currently, mill quotes were on the high side, generally above $470/mt, while market tradable prices were mostly at $465-467/mt. Steel mills had a strong willingness to hold prices firm due to cost considerations, making it quite difficult to close export billet orders. [Rebar] Today, rebar export FOB quotations were basically stable. According to market feedback, recently, some steel mills, due to maintenance of blast furnaces and associated construction steel rolling lines, controlled the pace of taking rebar export orders. Meanwhile, wait-and-see sentiment among overseas clients was strong, leading to a noticeable shrinkage in overall export rebar orders. [Sheets & Plates] Today, export prices of HRC and other sheets & plates edged down day-on-day but held steady, with HRC transactions at $492-501/mt. Recently, due to declines in domestic futures and adjustments in the yuan exchange rate, some distant countries began to increase inquiry and purchasing demand. In terms of semi-finished products, short-term inquiry and purchasing willingness was low due to high domestic prices and the fact that overseas buyers had already made a certain amount of purchases earlier.

[SMM Steel] Austrian steelmaker voestalpine finalized expansion plans for its greentec steel program, targeting a complete transition to electrified steel production at its Donawitz plant by 2030. The company will debut a new electric arc furnace (EAF) powered by green electricity in 2027, operating alongside traditional blast furnaces until decommissioning one unit in 2029. An approved EUR 100 million expansion budget will upgrade power systems, add a secondary metallurgy line, and improve scrap logistics by 2030, pending final funding approvals. This second stage will lift annual CO2-reduced steel capacity from 850000 tonnes in 2027 to 1.5 million tonnes by 2030, cutting site emissions by over 90% from 2019 levels. The transformation will close existing blast furnaces and the sinter plant, indirectly securing more than 5000 regional jobs. Core equipment installations begin in fall 2026.

[SMM Coking Coal and Coke Daily Commentary] On the news front, leading coke enterprises initiated the ninth round of coke price increases, raising wet quenched coke by 50 yuan/mt and dry quenched coke by 55 yuan/mt, effective from 0:00 on June 26. In terms of supply, most coke producers remain loss-making, which suppresses their production willingness, and coke supply tightens. On the demand side, steel prices fluctuate downward and steel mill profit margins narrow. However, blast furnace hot metal output at mills stays high, daily coke consumption remains relatively robust, and coke purchasing enthusiasm is moderate. Overall, the short-term coke market is expected to hold up well, with expectations for the ninth round of price increases to be implemented.

This week, ferrous metals edged higher before extending their pullback, with coking coal posting the largest decline. At the beginning of the week, the National Development and Reform Commission (NDRC) and other departments issued a notice on launching a three-year campaign for energy conservation and carbon reduction in key industries, and news that the U.S. and Iran were to sign a memorandum of understanding on the 19th improved market sentiment, lifting all ferrous metals. In the latter half of the week, expectations for an eighth round of coke price hikes materialized in the futures market. However, as steel mill profits narrowed further and spot coke had largely priced in the eighth increase, further upside room was limited. Combined with emerging expectations of peak hot metal output, futures began to correct and cost support weakened. Meanwhile, May macro data came in below expectations, dragging the entire ferrous metals complex lower...

According to SMM statistics, mill inventory slightly increased while social inventory destocked slightly. Total construction steel inventory stood at 7.7927 million mt, down by 67,800 mt MoM, or -0.86% MoM. However, as the off-season gradually sets in, inventory will enter an accumulation phase.