According to the SMM survey, on June 12, the total inventory at 10 ports tracked by SMM stood at 110.97 million mt, up 610,000 mt WoW. Coarse fines and concentrates showed inventory buildup, while lump and pellets experienced slight destocking.

The most-traded HRC contract fluctuated downward today, closing at 3,358, down 0.33% MoM. Spot sheets & plates fell 10-20 yuan/mt MoM, while some markets held steady. Supply side, hot rolling maintenance impact eased this week, weekly production rose 10,500 mt MoM, and supply pressure remains on a short-term uptrend. Demand side, the late-session decline weighed on market sentiment, with end-users buying at low prices and speculative demand weakening. Cost side, the spot market for coking coal and coke remained in a tight supply-demand balance. The sixth round of coke price increases was implemented, and futures prices are currently in the process of repairing losses. There are market talks of a seventh round of increases on the 12th, and cost support remains in place. In summary, based on HRC social inventory data, east China and south China markets saw MoM inventory buildup, while northeast, north China, and central China markets saw MoM destocking. No obvious supply-demand imbalance has emerged yet. However, as the off-season deepens, imbalances will continue to build. The market is expected to remain rangebound in the short term. Keep monitoring disturbances from the raw material side.

According to SMM statistics, as of June 11, the aluminum ingot inventory in Guangdong was 341,000 mt; in Wuxi, 527,500 mt; in Gongyi, 241,000 mt. The total inventory across the three regions reached 1.1095 million mt, down 19,500 mt from the previous period.

Today, HRC’s the most-traded contract fluctuated downward, closing at 3,380 yuan/mt, up 0.6% from the previous trading day. Spot sheets & plates prices rose 10-20 yuan/mt from the previous trading day. In terms of supply, this week, the impact from maintenance on hot rolling totaled 74,100 mt, down 156,400 mt WoW. Next week’s impact from maintenance on hot rolling is expected at 23,100 mt, down 51,000 mt WoW. Supply pressure sustained its uptrend this month. Demand side, futures rebounded near the close, improving market trading from the previous trading day. Trading was mostly at low prices, with some buyers taking advantage of the spot-futures price spread to purchase on dips. Cost side, near the close today, market rumors suggested that a major mine signaled a halt on certifying blended super special fines, driving iron ore futures to surge. However, subsequent rumors refuted this, causing futures to fluctuate sharply. For coking coal and coke, the spot market saw tight supply-demand dynamics, and they are expected to recover some losses in the short term. Overall, according to the regional HRC inventory data released today, except for South China, most regions maintained destocking. The supply-demand imbalance remains not significant, and they are expected to continue their sideways trend in the short term, with attention on disruptions in the raw material supply.

Today, the most-traded HRC contract fluctuated downward, closing at 3,380, up 0.6% from the previous trading day. Spot sheets & plates rose by 10-20 yuan/mt from the previous session. Supply side, this week’s impact from hot-rolling maintenance was 74,100 mt, down 156,400 mt WoW. Next week’s impact from hot-rolling maintenance is estimated at 23,100 mt, down 51,000 mt WoW from this week, and supply pressure continued its uptrend this month. Demand side, futures rebounded in late trading, and market transactions improved somewhat from the prior session, mostly at low prices, with some buying based on spot-futures price spreads at lows. Cost side, late in the session today, market rumors said that China Mineral Resources had informally instructed to suspend the issuance of letters of credit for blended super special fines, causing iron ore futures to rise in response. However, subsequent new rumors refuted this, leading to volatile swings in the futures market. For coking coal and coke, the spot market was tight in supply and demand, and in the short term prices may be recovering from earlier declines. Overall, HRC regional inventory data released today showed that except for South China, other regions mostly maintained destocking, and the supply-demand imbalance remained not significant. The market is likely to continue fluctuating in the short term, with attention on disturbances from the raw material side.

As we near the midpoint of the year, zinc concentrate treatment charges (TCs) have repeatedly tumbled to historic lows. As of June 5, the average TC for domestic zinc concentrate fell to 50 yuan per metric ton of metal content, while the TC for imported zinc concentrate dropped to -70.75 US dollars per dry metric ton.