[SMM Analysis] Weak Downstream Consumption Increases Pressure on Ex-China Steel Trading Price spread model, the price inversion of Chinese steel relative to overseas markets (India, Japan, Turkey, Black Sea) deepened further in late May. In particular, Chinese resources were cheaper compared to Indonesia, and the price spread was "narrowing at an accelerating pace." For pure ex-China inter-regional price spreads, India's decline was more pronounced compared to other regions, as weak domestic demand drove aggressive low-price bidding. Segment-wise, steel procurement sentiment in Southeast Asia became more cautious last week, with coil prices weakening. In Vietnam, coated steel and steel pipe prices began to slow down after a prolonged rally, and buyers became increasingly cautious about restocking ahead of the rainy season. Meanwhile, due to weak demand and growing pressure from low-priced imports, Formosa Ha Tinh Steel, a subsidiary of Taiwan's China Steel Corporation, also cut its HRC quotations by $5-10/mt to $598-603/mt CIF Vietnam. Although some Vietnamese downstream steel mills continued to raise or maintain prices due to earlier increases in raw material costs and tight spot supply, some producers had begun to limit orders or delay quotations while waiting for a clearer market direction. Notably, Indonesian HRC quotations remained competitive with relatively active exports, with FOB prices at around $565/mt. According to SMM survey, recent transaction prices to Vietnam were around $585/mt CFR. Turkey market: As the Middle East was set to enter a long holiday mid-week, most market participants had already exited early. According to SMM survey, no clear large-volume transactions were seen in the Turkish steel scrap market last week. Meanwhile, as domestic rebar demand remained sluggish, steel mills pushed their target purchase prices for European HMS 1&2 (80:20) scrap below $400/mt CFR to pass on the pressure. The recent euro depreciation and slight correction in ocean freight rates opened up some discount room for European sellers to a certain extent, but judging from actual market transactions, sellers still found it difficult to accept such low prices. At the same time, US exporters continued to hold prices firm at $420/mt CFR. In addition, mainstream quotations for Turkish domestic HRC remained at $660-675/mt EXW. Due to exchange rate fluctuations and high production costs, steel mills were striving to hold prices firm, but downstream buyers remained cautious in purchasing, with expected psychological prices 15-20 $/mt lower. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. 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Indonesian state-owned steel giant PT Krakatau Steel (Persero) Tbk (IDX: KRAS, hereinafter referred to as "Krakatau") released its 2025 consolidated financial statements on March 31, 2026. On the surface, the company recorded a net profit of 339.6 million USD (approximately 5.68 trillion IDR), its best performance since 2019. However, unpacking the core steel business reveals that the steel segment's operating loss in 2025 actually widened from 40.79 million USD in 2024 to 102.5 million USD.

[SMM Stainless Steel Daily Review] SS Futures Hit New Stage High Again, Stainless Steel Spot Transactions Cooled Before Labour Day Holiday SMM, April 28: SS futures showed a strong upward momentum. Driven by the continued strength of SHFE nickel, SS futures rose further, breaking through the high since 2023 again, once reaching 15,670 yuan/mt. As of the morning close, the most-traded SS contract was quoted at 15,630 yuan/mt. Spot market, as SS futures successively broke stage highs, spot stainless steel prices stayed high. Although the Labour Day holiday was approaching, end-user downstream mostly held a cautious wait-and-see attitude, and overall transactions were relatively sluggish. The most-traded SS futures contract strengthened and probed higher. At 10:15 AM, SS2605 was quoted at 15,420 yuan/mt, up 45 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi ranged from 0 to 200 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coils in Wuxi rose by 50 yuan/mt; cold-rolled trimmed-edge 304/2B coils fell by 50 yuan/mt in Wuxi and 100 yuan/mt in Foshan; cold-rolled 316L/2B coils in Wuxi held stable; hot-rolled 316L/NO.1 coils in Wuxi held stable; cold-rolled 430/2B coils in both Wuxi and Foshan held stable. Currently, the stainless steel market saw spot prices hold up well, driven by the surge in futures, but end-user wait-and-see sentiment persisted. Actual transactions remained generally weak and were significantly influenced by futures changes, showing phased concentrated transaction patterns, with overall demand not fully matching the price gains. Futures, this week...

Japanese steel trading giant Metal One finalized the acquisition of all remaining shares in PSCTH (Pacific Sheet & Coil (Thailand) Co., Ltd.), converting it into a wholly owned subsidiary. PSCTH operates an integrated processing system in the Thai market, offering high-quality services across various widths. Since adding a coil polishing machine in 2018, sales of its premium polished products have grown significantly. Metal One now aims to leverage the subsidiary's bonded factory status and its own global network to boost high-value product sales and expand international export operations.

[SMM Stainless Steel Daily Review] SS Futures Fluctuated Upward, Spot Stainless Steel Trading Sluggish Ahead of Qingming Festival SMM News on April 3: SS futures showed an upward fluctuation trend. SHFE nickel drove SS futures to stop falling and strengthen, closing at 14,235 yuan/mt as of the midday close. Spot market, although SS futures stopped falling and rebounded, the overall gains were limited, providing no obvious boost to the spot market; coupled with the approaching Qingming Festival holiday, overall market trading sentiment was sluggish, and traders' quotes were largely stable. The most-traded SS futures contract stopped falling and strengthened. At 10:15 a.m., SS2605 was quoted at 14,150 yuan/mt, up 40 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the range of 270-470 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coils in Wuxi was unchanged; for cold-rolled burr-edge 304/2B coils, the average price in Wuxi was unchanged, and the average price in Foshan was largely stable; cold-rolled 316L/2B coils in Wuxi were unchanged; for hot-rolled 316L/NO.1 coils, Wuxi quotes were unchanged; cold-rolled 430/2B coils in both Wuxi and Foshan were largely stable. The stainless steel market is currently in the traditional peak consumption season of "Golden March and Silver April," and the fundamental downstream demand improved compared with the previous period. End-user procurement continued at a pace based on rigid demand, and overall trading volume was sufficient to support the market's basic vitality. However, affected by macro news disruptions and fluctuations in futures, downstream end-user clients still maintained a wait-and-see sentiment, showing no willingness to stockpile, and transactions fluctuated with changes in the news flow. Futures, the Iran geopolitical conflict is difficult to resolve in the short term, and uncertainty in macro news continues to cause disruptions...

[SMM Daily Brief Review of Coking Coal and Coke] In terms of supply, with costs remaining high, most coke producers saw wider losses and began to push for a coke price hike, but losses remained within an acceptable range, and coke production stayed stable. On the demand side, steel trading improved somewhat, steel mills became more willing to produce, and daily average hot metal production continued to increase, further boosting rigid demand for coke. Overall, coke fundamentals shifted toward tightness, but steel mills showed only average acceptance of higher coke prices, and the coke market may remain generally stable with slight rise in the short term.