Construction steel social inventory: According to an SMM survey, total construction steel social inventory posted a slight build this period. As of August 13, 2026, SMM construction steel social inventory stood at 5.7557 million mt, up 50,000 mt WoW, an increase of 0.88%. During the survey period, Typhoon Dolphin struck, bringing heavy rainfall to some regions. Outdoor projects experienced severe waterlogging and construction progress was hindered. Compounded by transportation disruptions, end-use procurement demand declined, and inventory continued to build. Regional social inventory: Inventory performance across regions remained divergent. In east China, overall inventory shifted from decline to increase, mainly because typhoon-related heavy rainfall significantly constrained outdoor construction work and slowed the pace of end-use procurement. In northeast China, new maintenance at an individual blast furnace steel mill reduced supply, driving inventory from increase to decline. Inventory in southwest China also destocked slightly, mainly because the futures market improved somewhat during the survey period, market sentiment recovered in phases, and buying interest strengthened slightly. In addition, some steel mills in the region reduced production and overall material arrivals declined slightly; combined, these factors shifted inventory from increase to decline. Inventory performance in other regions was basically normal.

[SMM Coking Coal and Coke Daily Briefing] Coking coal market: The quotation for Linfen low-sulphur coking coal is 2,010 yuan/mt. Coking coal side, safety inspections remain stringent. Supply from most operating mines in Shanxi is restricted, and the frequency of online auctions closing at premiums has recently increased. Prices for some premium low-sulphur coking coal and fat coal have been raised slightly. Additionally, a sharp rise in coking coal futures significantly boosted market sentiment, leading to a clear recovery. In the near term, coking coal market may consolidate on a strong note. Coke market: The nationwide average price for dry-quenched quasi-first-grade metallurgical coke is 1,925 yuan/mt. News side, market rumors suggest that coke producers are planning to initiate the first round of coke price increases, tentatively scheduled to start on August 20. Supply side, coke producers are facing high costs, with most falling into losses. Those producers have voluntarily adopted production restrictions, resulting in a decline in total coke supply. Demand side, some blast furnaces that were under maintenance earlier are expected to resume production, which could increase hot metal output and thereby boost mills' rigid demand for coke. However, end-user steel demand is lukewarm and mills' own margins are weak, so overall purchase willingness remains cautious. In summary, spot coke prices are likely to consolidate on a strong note in the near term. [SMM Steel]

Hydnum Steel has secured a €150 million investment from COFIDES, Spain’s state-owned development finance institution, to build the Iberian Peninsula’s first eco-friendly steel plant in Puertollano, Ciudad Real. The plant will produce 2.7 million metric tons of steel sheet per year using EAF technology powered by renewable electricity and green hydrogen, thereby reducing emissions by up to 98% compared to conventional steelmaking processes using blast furnaces. This investment is part of a broader €1.5 billion financing package supported by Spain’s PERTE II decarbonization program. The program will help meet the demand for eco-friendly steel while reducing environmental impact.

The Italian government is preparing to launch a new tender in early September for the sale of the Acciaierie d'Italia steelworks (formerly Ilva) in Taranto, following evaluations of ongoing bids from potential investors. Industrial groups, including India's Jindal Steel, have submitted proposals targeting the complete acquisition of the complex's hot and cold production assets. The upcoming government summit at the Palazzo Chigi will decide the facility's future, weighing trade union demands against the necessary capital required to fully decarbonize and restart the idled blast furnaces.

This week, multiple news items on the raw material front successively boosted market sentiment, with finished steel prices rebounding from lows in phases and generally showing a bottoming-out trend. At the start of the week, the weak fundamentals of finished steel were hard to change, and ferrous metals prices had overshot to the bottom. Subsequently, however, coal mines in Shanxi were affected by rainfall, and circuit failures led to production suspensions at some mines, sentimentally driving ferrous metals prices to bottom out. Mid-week, there were rumors of a 48-hour strike at BHP, with limited short-term tangible impact, but sentiment...

Today, iron ore futures trended steadily. The most-traded DCE I2609 contract closed at 716.5 yuan/mt, up 0.35% from the previous trading session. Spot prices at Qingdao Port fell by an average of about 0-2 yuan/mt from the previous trading day. Trader activity was moderate, steel mills purchased as needed, and overall spot transactions were moderate. This week, iron ore showed a weak supply-demand trend. SMM's latest statistics show that total iron ore inventory at 35 major ports nationwide was 146.39 million mt, down 420,000 mt WoW. Meanwhile, daily average port pick-up volume edged down 45,000 mt to 3.095 million mt. On the supply side, affected by the pace of earlier shipments and weather factors, port arrivals edged down slightly. On the demand side, this week some blast furnaces entered maintenance, and SMM's daily average pig iron production fell to 240.58. Iron ore demand also declined. From a fundamental perspective, short-term iron ore prices may mainly consolidate. [SMM Steel]

Prices in China's iron ore concentrates market fell notably this week. From a regional perspective, prices in Tangshan, Qian'an, and Qianxi in Hebei were cut by 15-20 yuan/mt; Chaoyang, Beipiao, and Jianping in western Liaoning edged down by 5-10 yuan/mt; and east China edged down by 5-10 yuan/mt.

SAIL has commissioned its first 0.18 MTPA Micro Pellet Plant at Rourkela Steel Plant, enabling the recycling of iron- and steelmaking waste into micro pellets for reuse in blast furnaces, improving resource efficiency and supporting more sustainable steel production.

August rebar planned production at 7.2229 million mt, down 96,100 mt or 1.31% from July actual output. August wire rod planned production at 3.0722 million mt, down 120,800 mt or 3.78% from July actual output. Export planned production of long products at sampled steel mills in August was 590,000 mt, down 63,000 mt MoM, with billet export planned production at 320,000 mt, down 30,000 mt MoM.

Iron ore prices bottomed out and rebounded this week, while the weekly average edged down MoM. On Monday, weighed by last week’s bearish sentiment, the most-traded contract I2609 extended its decline and led losses across ferrous metals, hitting an intraday low of 692.5 yuan/mt , a new low for the year. However, as sentiment was released, short positions took profits and exited; in addition, news around long-term contract negotiations and a BHP port workers’ strike helped iron ore prices bottom out. That said, iron ore fundamentals remained weak, with hot metal production falling rather than rising this week. After Tangshan’s environmental protection-driven production restrictions ended, blast furnaces under maintenance resumed production one after another, but end-use demand weakened further; steel mills faced sluggish shipments and inventories continued to build. Some loss-making steel mills increased blast furnace maintenance, weighing on hot metal output. Overall iron ore demand declined, limiting upside room for ore prices. Port spot cargoes were relatively resilient, especially mainstream low-grade and high-grade ore. With SSF port departures constrained and short-term supply of Ukrainian concentrates tightening, product premiums were supported, providing some downside support for ore prices. Chart: MMI 61% Port Spot Index Source: SMM China’s iron ore concentrates market prices fell notably this week. By region, prices in Tangshan, Qian’an, and Qianxi in Hebei were cut by 15-20 yuan/mt; Liaoxi areas including Chaoyang, Beipiao, and Jianping edged down 5-10 yuan/mt; east China fell 5-10 yuan/mt. The current dry-basis, tax-included EXW price for 66-grade iron ore concentrates in Tangshan, Hebei was quoted at 950-960 yuan/mt. As steel mills were generally loss-making, their desire to bargain down prices was strong; meanwhile, after holding prices firm for a long time, local concentrates saw their cost-effectiveness continue to weaken. In addition, with some recovery-driven growth in concentrates supply from the Chengde area recently, sentiment among mines and beneficiation plants to hold prices firm loosened. Mines and beneficiation plants in other regions mostly maintained normal production as planned. Demand side, under loss pressure, steel mills mainly pushed for lower procurement prices. Overall, domestic concentrates prices showed a downward trend this week. Chart: The Price Spread Between Imported and Domestic Ore Widened First and Then Narrowed This Week; It Is Expected to Narrow Next Week Outlook for Next Week Imported ore: Looking ahead to next week, iron ore prices may consolidate with a pattern of falling first and then rising, with the bottom gradually lifting. Bullish and bearish factors will intertwine, and the market tug-of-war is set to intensify. On the support side , potential supply-side disruptions still have room to ferment: the union at BHP’s Port Hedland planned to launch a subsequent 24-hour strike escalation on August 9, and port operations face the risk of phased interruptions, which may disrupt the short-term shipment pace; meanwhile, Rio Tinto’s long-term contract is set to expire in August, and subsequent negotiation progress has also entered the market’s observation window, lifting the uncertainty premium on the supply side. In terms of liquidity, the central bank conducted a 500 billion yuan three-month outright reverse repo operation on August 5, releasing a signal of marginal easing that provided some support to market sentiment. Additionally, premiums for pellets and high-grade ore strengthened, with structural demand support persisting. However, constraining factors cannot be overlooked : next week, typhoon weather will limit end-user construction conditions, and demand will weaken further; inventory pressure from steel products at steel mills continues to build, amplifying wait-and-see sentiment on the procurement side and keeping restocking willingness subdued. According to SMM calculations of the impact from blast furnace maintenance, the daily average hot metal production of steel mills will continue its downward trend next week, with demand-side pressure gradually escalating. Port inventory faces the possibility of further accumulation, capping the upside room for ore prices. On balance, ore prices are expected to consolidate next week. News-driven disruptions may spur periodic price upticks, but constrained by a bearish fundamental landscape, the rebound height is likely to be limited. Subsequent recommendations focus on: the progress of the BHP Port Hedland strike and the conclusion of Rio Tinto’s long-term contract negotiations, as these factors may serve as significant catalysts for near-term price direction . Domestic Ore: Looking ahead to next week, some ore processing plants are expected to resume production, potentially easing the shortage of ore concentrates resources in stages; on the demand side, hot metal production of steel mill blast furnaces may decline further. Overall, domestic iron ore concentrate prices still face downward pressure to edge down.