【SMM Steel】UK-based company Binding Solutions has reached an agreement with Mitsui Iron Ore Development to produce low-carbon iron ore pellets in Western Australia's Pilbara region. The company's technology significantly reduces energy consumption and CO2 emissions compared to conventional pellet production processes. The partnership will utilize a low-energy cold agglomeration process to transform lower-grade iron ore fines into higher-value pellets. These pellets are suitable for electric arc furnace steelmaking, supporting steelmakers' decarbonization efforts. Binding Solutions has previously conducted industrial trials with producers such as British Steel and aims to build an industrial-scale production plant.

SMM, June 9, 2025: According to statistics from the General Administration of Customs of China, China imported 98.131 million mt of iron ore fines and its concentrates in May, a decrease of 5.007 million mt MoM, down 4.9% MoM , and a decrease of 3.8% YoY . The cumulative imports of iron ore fines and its concentrates from January to May reached 486.409 million mt, down 5.2% YoY . From the perspective of SMM's port arrival data, the import volumes by country in May exhibited structural differentiation characteristics: arrivals from Australia continued to increase; however, there were significant reductions from sources such as Brazil, India, South Africa, and Ukraine. Demand side, domestic steel mills' pig iron production peaked and then pulled back, coupled with the advancement of crude steel output reduction policies, prompting some steel mills to initiate annual maintenance ahead of schedule, leading to an overall weakening of import demand. Supply side, affected by the diversion of demand to Europe and India, the proportion of Brazilian ore flowing to Europe increased, and the growth in India's domestic consumption constrained its export scale. Meanwhile, the decline in ore prices suppressed the shipping enthusiasm of non-mainstream mines such as those in South Africa, while the continuous accumulation of Ukrainian concentrate inventory at domestic ports led traders to prioritize the digestion of spot cargo, further reducing immediate purchases. Under the combined influence of multiple factors, the total iron ore imports in May showed a downward trend. Looking ahead to June, iron ore imports are expected to increase . Despite market expectations that domestic demand will continue to decline, the decline is anticipated to be limited. Due to the continuous decline in iron ore prices, the cost-effectiveness of imported iron ore is currently higher, and steel mills have increased their usage ratio, becoming the core driving force supporting the overall high demand for imported iron ore. The supply side presents a complex situation. On the one hand, the collapse of port equipment in Peru in May will lead to a significant decline in its shipping volume. On the other hand, as the closing month of Q2, most mines will actively increase their shipping volumes to meet their mid-year production targets, a factor that will strongly drive an increase in iron ore port arrivals. Chart-: China's Iron Ore Imports Source: General Administration of Customs of China 》View SMM steel product quotes, data, and market analysis 》Subscribe to view SMM metal spot historical prices

[SMM Steel Morning Meeting Summary] On the spot market, intraday quotations fluctuated relatively small on a WoW basis, with market transactions weaker than yesterday. According to SMM data, this week's HRC inventory in Shenyang was 104,300 mt, down 2,000 mt WoW, a decrease of 1.88%. It was also down 64,700 mt YoY, a decrease of 38.28%. On the fundamental side, the daily average HRC production schedule in May decreased slightly MoM from April, with supply pressure less than previously expected. In the short term, the Sino-US tariff war has come to a temporary halt, and the trading space for favourable macro front has narrowed. There is insufficient momentum for HRC prices to rise further, and it is expected that the most-traded contract will fluctuate within the 3140-3280 range in the short term. In the medium and long-term, off-season demand will gradually pull back. Without further macroeconomic stimulus, the price center of HRC will still move lower.

SMM, May 9, 2025: According to statistics from the General Administration of Customs of China, China imported a cumulative total of 103.14 million mt of iron ore fines and their concentrates in April, up 9.75% MoM and 1.3% YoY . From January to April, the cumulative imports of iron ore fines and their concentrates reached 388.48 million mt, a 5.5% decrease YoY . The main driving factors include: 1) Improvement on the supply side: Weather disturbances in the Southern Hemisphere have weakened, and shipments from mainstream mines in Australia and Brazil have increased by 5-8% MoM, with port arrivals rebounding steadily; 2) Support on the demand side: The daily average pig iron production has reached its peak. Coupled with the concentrated restocking by steel mills before the Labour Day holiday, the overall demand for iron ore has increased, driving up import demand. Looking ahead to May, there is still room for an increase in iron ore imports, driven by the demand support from pig iron production fluctuating at highs and overseas mines entering the peak shipping season. After the decline in Australia's shipments in Q1, mainstream mines are expected to increase their shipping efforts in Q2 to meet their semi-annual targets. However, caution should be exercised regarding the potential suppression of high-cost non-mainstream ore shipments due to the expected decline in ore prices amid production restrictions on crude steel. Considering the impact of one additional working day in May compared to April, SMM expects a significant increase in iron ore imports for the month. Chart: China's Iron Ore Imports Source: General Administration of Customs of China 》View SMM steel product quotes, data, and market analysis 》Subscribe to view historical spot prices of SMM metals

[SMM Steel Morning Meeting Summary] From a fundamental perspective, on the supply side, most blast furnace steel mills are generating profits from producing construction materials. A few manufacturers originally planned to conduct maintenance in early May, but have postponed it due to production profitability. Additionally, to meet billet orders, steel mills in coastal regions are offering significant discounts on their planned rebar output for May. Recently, steel scrap prices have remained above the psychological expectations of EAF steel mills, leading to persistent difficulties in scrap collection that continue to affect steel mill production. As a result, steel mills are generally maintaining a moderate production level. However, given the electricity price subsidies in some regions of Southwest China starting from May, it is not ruled out that manufacturers in these areas may increase their operating hours. On the demand side, downstream construction sites had stockpiling needs before the holiday, and overall market transaction performance was moderate. There is still an expectation for a wave of procurement volume to be released in project plans after the holiday, so demand remains promising. Looking ahead, supply-side pressure is not prominent for the time being, and demand expectations after the holiday are likely to be sustained, providing some support for the floor price of the market. However, considering the slower pace of inventory digestion at steel mills and traders during the holiday, inventory pressure may rebound in the first week after the holiday. It is expected that spot prices may still rise after the holiday, but the increase will be limited. Caution should be exercised against insufficient demand release after the holiday, which could force market sentiment to weaken, leading to a situation where prices jump initially and then pull back. Attention should be paid to the resistance level of 3170-3180 for the RB2510 contract after the holiday.

【SMM Steel Morning Meeting Summary】Yesterday, rebar futures maintained a fluctuating trend, closing at 3,129, up 0.61% from the previous trading day. In the spot market, prices in some regions rose slightly, with increases ranging from 10 to 30 yuan/mt. The futures market lacked sustained performance, and market sentiment weakened somewhat, with overall trading volume being average. On the supply side, there has been strong demand for billet exports recently, with profit margins higher than those for rebar. Some manufacturers have nearly filled their billet orders for May-June, and there are expectations of reduced finished steel production. Additionally, many blast furnace steel mills have recently announced new maintenance plans, which may alleviate the supply pressure for finished steel after the holiday. On the demand side, influenced by the pullback in the morning session, market enthusiasm has diminished, with end-user purchases primarily driven by immediate needs. Overall, the current fundamental situation for construction steel is moderate. However, with intensified competition in the futures market and increased market caution, it is expected that construction steel prices will maintain a fluctuating trend in the short term.