Today, the DCE iron ore futures moved strongly today. The most-traded DCE I2609 contract closed at 747.5 yuan/mt, up 0.74%. Spot prices at Qingdao Port rose roughly 5-8 yuan/mt from the previous trading day. Trader activity was moderate, and inquiries from steel mills were limited. Spot trading was poor.

[SMM Nickel Flash] July 23 news: Currently, the demand-side market is generally pessimistic about the August market, steel mills' purchase willingness is weak, and most enterprises maintain low purchase intentions. Buyers tend to negotiate using an average-price premium/discount model and have low acceptance of fixed lump-sum prices.

Transactions in the domestic ore market in western Liaoning are weak. The pre-tax EXW price of wet basis 66% grade acid concentrate in the Chaoyang area is 715-720 yuan/mt, but at this price, beneficiation plants find it difficult to sell. Buyers and sellers are mostly in a stalemate, taking a wait-and-see approach. Some mines have resumed production, but due to strict inspections, operations will remain at low levels, and short-term supply relief is limited, providing strong support for prices. Steel mills currently have a relatively strong desire to bargain down prices and mostly purchase as needed. Combined with the recent weak trend of iron ore futures, it is expected that local iron ore concentrate prices may consolidate on a subdued note in the short term. [SMM Steel]

Iron ore futures trended strongly today. The DCE most-traded contract I2609 closed at 747.5 yuan/mt, up 0.74%. Spot prices at Qingdao Port rose about 5-8 yuan/mt from the previous trading day. Trader activity was moderate, with few inquiries from steel mills. Currently, spot transactions remained weak. Steel mills' demand for iron ore has slowed down recently. According to SMM, inventories at the ten major ports totaled 105.63 million mt, down only 640,000 mt WoW. Based on the current inventory structure, destocking of iron ore concentrate and lump ore was relatively significant, pellet inventories were at low levels, while fine ore saw slight inventory buildup. Demand side, the market remained in off-season conditions. Although the environmental protection-driven production restriction policy was relatively mild, steel mills still faced a certain probability of proactive blast furnace maintenance. Next week, expectations for the Politburo meeting may heat up, which could boost market sentiment in the short term. However, overall, short-term iron ore prices are expected to continue moving sideways in a narrow range. [SMM Steel]

[SMM Coking Coal & Coke Daily Review] Coking Coal Market: The quotation for low-sulphur coking coal in Linfen was 2,020 yuan/mt. Coking coal, safety inspections at coal mines maintained a high-pressure posture, and the pace of production resumptions at halted mines was slow. However, the first round of coke price cuts was implemented, leading to increased wait-and-see sentiment in the coking coal market. The trading atmosphere was sluggish, mines signed few new orders, and failed auctions were still quite common in online bidding. But affected by new coal mine safety regulations, the market generally believed there was pressure on coal supply guarantees. In the short term, coking coal prices may remain in the doldrums. Coke Market: The nationwide average price of quasi-first-grade metallurgical coke (dry-quenched) was 2,035 yuan/mt. Supply side, the first round of coke price cuts was implemented, and most coke enterprises suffered losses. However, coking coal prices were expected to decline, and currently, coke enterprises maintained stable operations. Additionally, the pace of coke shipments slowed down, and coke inventories at plants further accumulated. Demand side, end-use demand remained weak, steel mills increased blast furnace maintenance plans, maintained a cautious stance toward coke procurement, and controlled the pace of coke arrivals. In summary, the coke supply-demand structure further loosened, and in the short term, the coke market may remain in the doldrums, with expectations of a second round of price cuts. [SMM Steel]

[Sheets & Plates] Today, export prices of hot-rolled coil (HRC) and other sheets & plates rose $1-2/mt DoD, with HRC transaction prices at $487-492/mt. China’s futures market rose today, and traders reported that transactions were not as good as in the previous few days, while order intake at steel mills also fell short of expectations.

On July 23, total rebar inventory this week was 675.88 mt, WoW +31,400 mt, up 0.47% WoW, and up 31.32% on a Chinese calendar YoY basis; total wire rod inventory was 1.55 million mt, WoW +27,800 mt, up 1.83% WoW, and up 43.07% on a Chinese calendar YoY basis.

As of July 21, the operating rate among 50 EAF steel mills mainly producing construction steel nationwide was 36.62%, up 0.04 percentage point WoW; the capacity utilization rate was 36.50%, down 0.06 percentage point WoW; daily average production of construction steel stood at 81,300 mt, down 100 mt WoW.

According to SMM statistics, both mill inventories and social inventories saw inventory buildup to varying degrees. Total construction steel inventories reached 8.4379 million mt, up 41,800 mt WoW, or up 0.50% WoW, with the pace of inventory buildup continuing to slow.

[Bigger Logistics Reset Underway — Afrexim Loan, China-Backed Mega Financing and Reopened Mozambique Rail Line Reinforce Zimbabwe's Chrome Export Corridor] 1. NRZ is finalizing a US$115 million loan from Afreximbank to rehabilitate rail infrastructure and refurbish locomotives, announced in early June. 2. Government is exploring mineral-backed financing with China — including talks with China Railway — for an estimated US$34 billion national transport-and-logistics modernization plan, modelled on the DRC's Sicomines resource-for-infrastructure deal; Finance Minister Mthuli Ncube confirmed the discussions at the World Economic Forum in Dalian last month. 3. The Mozambique–Zimbabwe rail line has reopened after a four-month closure, alongside ongoing NRZ recapitalization under a three-phase turnaround strategy — measures that directly cut chrome and ferrochrome export lead times to Asian, European and American stainless-steel mills. 4. The Chamber of Mines of Zimbabwe has singled out Zimasco and Afrochine (Tsingshan) to lead ferrochrome production growth, with both operators already running material volumes through the Maputo-bound rail network.