SMM News Flash: [Rebar] Rebar export FOB offers remained stable today. Market traders reported that inquiries were relatively mediocre and transactions remained weak, with strong wait-and-see sentiment among market participants. [Steel Billet] Billet export offers were in the doldrums today, quoted at 473-476 USD/tonne. Market feedback indicated that current trader offers were on the high side, while overseas billet export offers declined, weakening China's competitiveness and resulting in mediocre inquiries and poor transaction performance. [HRC] Sheet & plate export prices dropped1-2 USD/tonne day on day today, with HRC transaction prices at 496-50 USD/tonne. Market feedback showed that inspection rates at North China ports had increased recently, causing some unofficial quoted sources to shift to relatively less stringent ports for port departures, and corresponding price spreads narrowed. Regarding the de-escalation of US-Iran tensions, some export participants consulted today reported no notable increase in inquiries yet, and buyers may also be waiting to see subsequent risks.ently, there have been some new inquiries for medium and heavy plate in the Middle East, with a portion of them resulting in transactions. [India] A 0.40 INR/kWh industrial power tariff increase in Chhattisgarh, effective 1 Jul 2026, will raise induction furnace billet costs by ~3.17–3.80 USD/tonne and re-rolling (rebar/wire rod) costs by ~0.51–0.63 USD/tonne. Weak monsoon-season demand limits cost pass-through, with billet margins at risk of erosion by 2.64–3.69 USD/tonne. [SEA] Currently, construction project operating rates in Vietnam, the Philippines, Indonesia, and Thailand are at a seasonal low, severely suppressing rigid demand for long steel products such as rebar and wire rod. End-user buying sentiment is weak, the pace of overall inventory destocking is slow, and local major mills' rebar EXW prices are at 520–535 USD/tonne. Meanwhile, with the release of information on US-Iran negotiations, news of the Strait of Hormuz unblocking has sparked expectations among Southeast Asian buyers of lower freight rates, creating a mindset of buying on dips and waiting on the sidelines. However, according to SMM's latest survey, even if the agreement can be signed smoothly on the 19th, the actual unblocking of the strait will still require a buffer period. Freight rates are expected to be difficult to lower in the short term and will mainly fluctuate at high levels. [Taiwan, China] This week, Feng Hsin, a leading long steel producer in Taiwan, kept its long steel prices stable, halting a three-week downward streak. Specifically, the rebar price stabilized at 583 USD/tonne EXW (approximately 18400 TWD/tonne), while the structural steel price held steady at 792 USD/tonne EXW (approximately 25000 TWD/tonne). This price stability indicates that mills are ready to accept new orders as the market gradually bottoms out.

SMM News Flash: [Rebar] Today, export FOB prices for rebar rose slightly by about USD 2/tonne. According to market traders, inquiry activity was relatively decent, but actual transactions remained average. Some participants also noted that long steel demand in South America has been relatively stable recently, while demand in the Middle East remains weak. Regarding the US–Iran peace agreement, there has been no significant change in order flow so far, and overall market sentiment remains cautious and wait-and-see. [Billet] Today, export billet offers increased slightly by around USD 2/tonne, with prices at approximately USD 473–476/tonne FOB. Market feedback indicates that countries such as Indonesia and India are actively exporting billets, leading to intensified competition. However, domestic export price advantages are not obvious, as rising production costs are limiting steel mills’ willingness to discount, while traders are also more cautious in taking short positions. As a result, overall transaction activity remained moderate. [HRC] Today, export prices for flat steel products rose by USD 2/tonne day-on-day. Hot-rolled coil transaction prices were in the range of USD 497–506/tonne. Market inquiry activity was moderate, with no significant release of concluded deals. Recently, there have been some new inquiries for medium and heavy plate in the Middle East, with a portion of them resulting in transactions. [India] Ship-breaking scrap prices in the Alang (Gujarat) market increased by around 3 USD/tonne, with HMS (80:20) assessed at approximately 373 USD/tonne EXW. Semi-finished steel prices remained broadly stable, while finished steel saw a mild correction in the previous trading session. Market sentiment in Alang stayed subdued, as vessel arrivals remained at historically low levels. Strong freight economics continued to incentivize shipowners to extend the operating life of older vessels, limiting scrap inflows. In the near term, Alang scrap prices are expected to remain supported but constrained by tight supply conditions, with further movement largely dependent on vessel arrivals and downstream steel demand. [Thailand] Galvanizing quotes in the Thai market remained stable in the short term, with import offers still around 710 USD/tonne; however, for large-volume firm orders, the market could consider offering a discount of 5-10 USD/tonne. Wire rod quotes were also relatively stable, but some traders had to push up prices by 20 USD/tonne to 570 USD/tonne due to rising costs. In terms of local market transactions, downstream end-use demand was weak, and actual deals mostly shifted to a "negotiate deal by deal" model. It is expected that in the short term, Thai wire rod and galvanizing prices will hover at highs. Whether prices can subsequently stabilize on a solid footing will mainly depend on the release of downstream firm orders and the final bargaining and concession room offered by sellers under shipment pressure. [South Korea] Facing the approaching rainy season, South Korean builders are racing against time to push forward the final “intensive rush to meet deadlines” for foundation and main structure works, and the upward momentum of finished steel prices has slowed significantly. Today, POSCO’s two core steelworks (Pohang and Gwangyang) simultaneously raised the purchase price of high-quality pig iron scraps/premium steel scrap by 15,000 won/tonne (approximately 9.93 USD/tonne), and medium and light scrap by 10,000 won/tonne (approximately 6.62 USD/tonne), mainly to prevent domestic supply from being snapped up by other EAF steel mills before the off-season arrives. POSCO had no choice but to raise buying prices against the trend to “lock in” domestic spot cargo flows.

Hoa Phat’s 2025 results marked a major step-up driven by the ramp-up of Dung Quat 2, pushing crude steel output above 11 million tons and lifting earnings through higher volumes and cost dilution despite weak global steel prices. Growth was supported by stronger HRC and downstream sales, a rising export mix, and continued domestic dominance. The year also signals a strategic shift toward higher-value products and future capacity expansion into rail and special steels.

At 4:15 PM on June 8, 2026, a ladle explosion at the SMS-1 steelmaking shop of Visakhapatnam Steel Plant (VSP) — operated by Rashtriya Ispat Nigam Limited (RINL) — unleashed molten metal at over 1,500°C onto the working platform below Caster-2. According to a preliminary report by India's Chief Inspector of Factories, the cause was a sudden release of gas entrapped within the liquid steel, which ruptured the ladle seal before the sliding gate was opened, triggering a catastrophic spill.

[Saudi Arabia] Saudi major mills' domestic rebar prices have risen to 780 USD/tonne, though trading activity has been light this week due to the Eid al-Adha holiday. On the cost side, recent increases in Saudi scrap prices are providing some support to the long steel market. On the import front, steel orders from China to the Middle East have gradually resumed recently, though volumes are still down about 80% compared to the same period in 2025. Destinations mainly include Saudi Arabia's Jeddah port and Oman's Sohar port, with freight rates at around 55 USD/tonne. After discharge, cargo is typically trucked overland to inland destinations.

[SMM Steel] German plant maker SMS Group completed the modernization of CELSA Barcelona’s medium section mill at its Castellbisbal site in Spain. The upgrade included replacing one of the 25-year-old CCS® mill stands and installing advanced electrical and automation systems to improve rolling force and operational efficiency. SMS said hot commissioning finished two days ahead of schedule, with regular production resuming immediately after a successful 700 mt rolling campaign. The mill’s annual capacity has increased from 500,000 mt initially to around 1 million mt following multiple upgrades, supporting higher-quality long steel production for the construction sector.

ArcelorMittal (AM) — 2025 Annual Report Summary ArcelorMittal, the world's second-largest steel producer, released its 2025 Annual Report in March 2026. During the year, the Group's steelmaking operations experienced a broad-based slowdown: crude steel output in Europe contracted sharply by 6.6% year-on-year, while volumes in India and Brazil also declined. Only North America recorded output growth, driven by the consolidation of an additional steelworks. These dynamics reflect softening apparent steel consumption (ASC) globally, compounded by intensifying competitive pressures. Nonetheless, the Mining segment delivered an outstanding performance — iron ore shipments from Liberia surged 37.5%, providing a meaningful offset to the headwinds in the steelmaking divisions. I. 2025 Key Production, Shipment & Financial Overview In 2025, ArcelorMittal demonstrated strong operational resilience against the backdrop of subdued global steel demand and complex trade barriers. Portfolio optimisation — notably the full consolidation of the Calvert flat-rolled finishing facility — and robust growth in the iron ore business were the key highlights of the year. Despite a marginal decline in crude steel production and shipments, net profit expanded materially, primarily driven by non-recurring items — in particular, a US$1.9 billion accounting gain arising from the acquisition of the remaining 50% equity interest in AMNS Calvert. The increase in net debt was principally attributable to the full consolidation of Calvert and other M&A activities. II. Segment Distribution & Operational Performance In 2025, ArcelorMittal's global operational footprint underwent significant structural reconfiguration, most notably through the full acquisition of the North American Calvert flat-rolling facility and the divestiture of non-core assets in Bosnia-Herzegovina, further optimising the Group's production and shipment mix. The following presents a detailed comparison of key segment production and shipment data for 2025 versus the prior year: North America The segment recorded growth in both output and shipments in 2025, primarily benefiting from the full consolidation of the AMNS Calvert facility in the second half of the year, and the recovery of Mexican production following the 2024 labour strike. Crude Steel Production: 7.8 Mt (2024: 7.5 Mt), up 2.9% YoY Steel Shipments: 10.3 Mt (2024: 10.1 Mt), up 2.2% YoY Key Development: The 1.5 Mtpa Electric Arc Furnace (EAF) at the Calvert facility was commissioned in June 2025, enhancing the supply capability of high value-added flat products in the region. 2026 Volume Outlook: Both production and shipments are expected to increase in line with broader regional trends. Growth Driver: The 1.5 Mtpa EAF at Calvert, consolidated in H2 2025, is currently in capacity ramp-up phase and will contribute incremental volumes in 2026. Brazil Despite margin pressure, the Brazil segment maintained highly stable production and shipment volumes, continuing to serve as a key profitability pillar for the Group. Crude Steel Production: 14.3 Mt (2024: 14.5 Mt), down 1.3% YoY Steel Shipments: 13.9 Mt (2024: 14.1 Mt), down 0.9% YoY Key Development: The Barra Mansa long products mill expansion was commissioned in H2 2025, adding 0.4 Mtpa of high value-added long steel capacity. 2026 Volume Outlook: Steel shipments are projected to reach 15.4 Mt in 2026, significantly above the 13.95 Mt recorded in 2025. Growth Driver: Despite demand headwinds in 2025 caused by elevated interest rates and a surge in Chinese imports, the Group holds an optimistic outlook for 2026 growth. Europe Affected by soft market demand and a planned major reline of Blast Furnace No. 4 at Dunkirk, European crude steel output contracted. However, the smaller decline in shipments indicates relatively resilient market penetration. Crude Steel Production: 29.2 Mt (2024: 31.2 Mt), down 6.6% YoY Steel Shipments: 28.4 Mt (2024: 28.7 Mt), down 0.9% YoY Key Development: The divestiture of the Zenica long products integrated steelworks in Bosnia-Herzegovina was completed in October, reflecting the Group's strategic transition toward lower-carbon assets. 2026 Volume Outlook: Shipments are expected to recover and grow. Growth Driver: As the EU Carbon Border Adjustment Mechanism (CBAM) and the revised Tariff Rate Quota (TRQ) regime progressively take effect in 2026, the Group anticipates European domestic steelmakers recapturing market share from import competition. India & Other Joint Ventures Focus on the strategic joint venture AMNS India (60% equity interest): Crude Steel Production: 7.2 Mt (2024: 7.5 Mt), down 4.5% YoY, impacted by market volatility in H1 and unplanned maintenance outages Steel Shipments: 7.9 Mt (2024: 7.9 Mt), shipments remained resilient Key Development: The Hazira integrated steelworks in India is being expanded to 15 Mtpa capacity. The Group has also announced a long-term greenfield project in Andhra Pradesh with an 8.2 Mtpa capacity target, with the objective of increasing hot-rolled coil (HRC) capacity to 15 Mtpa by H2 2026, providing incremental production and shipment uplift. Crude Steel Production (Other Subsidiaries): 4.3 Mt (2024: 4.6 Mt), down 6.52% YoY Mining The Mining segment was the Group's strongest growth engine in 2025, driven by the successful ramp-up of the Phase II expansion project in Liberia. Own Iron Ore Production (Mining segment only): 35.3 Mt (2024: 27.9 Mt), up 26.5% YoY Iron Ore Shipments: 36.3 Mt (2024: 26.4 Mt), up 37.5% YoY Key Development: Liberia achieved a record annual shipment of 10 Mt and is progressing steadily toward a 20 Mtpa production target. 2026 Mining Segment Outlook: Liberia (AML): Volume Target: 20 Mtpa shipment target. The Group specifically projects that by end-2026, as the Phase II expansion and the beneficiation plant continue to ramp up, annualised shipments will exceed 18 Mtpa (vs. 10 Mt in 2025). Key Progress: A blended production model combining sinter fines and concentrates from Phase II will support a significant increase in production and shipment volumes, with rail haulage capacity being expanded toward a 30 Mtpa annual throughput target. Canada (AMMC): Trend: Stable production maintained. The conversion of the high-grade iron ore pellet plant for Direct Reduced Iron (DRI) production is expected to be completed in Q2 2026. 2026 Production & Shipment Outlook Summary The 2025 production and shipment profile signals ArcelorMittal's strategic pivot toward quality over pure volume. Despite marginal fluctuations in crude steel output in Europe and Brazil, the growth from high value-added assets in North America and low-cost iron ore operations in Liberia is structurally rebuilding the Group's cost and margin base. The Group projects global apparent steel consumption (ASC) ex-China to grow by 2% in 2026. Against this macro backdrop, the Group forecasts an increase in steel production and shipments across all regions in 2026 compared to 2025, underpinned by improvements in operational efficiency and the positive impact of trade protection measures. III. Production Infrastructure & Process Technology Profile ArcelorMittal operates a highly diversified asset portfolio spanning the full upstream-to-downstream value chain — from iron ore mining to downstream finishing and processing. As of end-2025, the Group's production process structure is as follows: Process Mix: Basic Oxygen Furnace (BOF) output accounts for 74% (41.2 Mt); Electric Arc Furnace (EAF) accounts for 26% (14.4 Mt). Facility Scale: The Group currently operates 30 Blast Furnaces (BF) and 27 Electric Arc Furnaces (EAF) . Capacity Distribution: Europe remains the largest production base, with an annual crude steel capacity of 39.5 Mt (53% of total), followed by Brazil (16.4 Mt) and North America (12.5 Mt). IV. Raw Material Self-Sufficiency & Supply Chain Integration The Group maintains a high degree of vertical integration upstream and downstream to hedge against market volatility — a core pillar of its industrial competitive advantage: Iron Ore Supply: Own iron ore production grew 15.1% YoY to 48.8 Mt in 2025. Canada (AMMC) contributed 25.6 Mt, while Liberia (AML) surged to 9.7 Mt. Self-Sufficiency Rates: In 2025, the Group achieved an iron ore self-sufficiency rate of 72% , a coking coal self-sufficiency rate of 91% , and a scrap steel and Direct Reduced Iron (DRI) self-sufficiency rate of 55% . Logistics Capacity: The Group operates 18 deep-water port facilities and associated rail infrastructure, handling over 51 Mt of freight annually. V. Key Asset Restructuring & Industrial Portfolio Realignment 2025 was a year of deep portfolio optimisation for the Group — divesting weaker assets and concentrating resources in high-growth, high value-added operations. Full Consolidation of Calvert (USA): In June 2025, the Group completed the acquisition of the remaining 50% equity interest in AMNS Calvert (previously a joint venture with Nippon Steel Corporation) at a nominal consideration. The facility is the most advanced flat-rolled steel finishing complex in North America. The newly constructed 1.5 Mtpa EAF produced its first slab in June 2025. Asset Divestitures & Operational Rationalisation: Bosnia-Herzegovina: Completed the sale of the Zenica integrated steelworks and the Prijedor iron ore mine. South Africa: Rationalisation of the long products business and the idling of the Newcastle steelworks were completed by end of January 2026. India Expansion: AMNS India remains a core growth engine. The Hazira integrated steelworks is on track to expand capacity to 15 Mtpa by H2 2026. VI. Major Capital Project Progress (Capex Allocation) ArcelorMittal is currently in a dual capital expenditure cycle: EAF transition and upstream iron ore capacity expansion . Total capital expenditure in 2025 amounted to US$4.34 billion . VII. Decarbonisation Pathway & Industrial Technology Upgrade ArcelorMittal is at a critical juncture in its transition from conventional blast furnace-based integrated steelmaking toward low-carbon process routes: EAF Capacity Expansion: By end-2026, the Group expects to add 3.4 Mtpa of EAF capacity, spanning Gijón and Sestao in Spain, and Calvert in the USA. Key Technology Projects: The 2.0 Mtpa EAF project at Dunkirk, France (€1.3 billion investment) is planned for commissioning in 2029 and is expected to generate carbon emissions at approximately one-third of the level of a conventional blast furnace. Energy Transition: By end-2025, the Group had commissioned 1.6 GW of renewable energy equity capacity, with a further 1.2 GW under construction, primarily in India and South America, with the objective of supplying low-cost clean electricity to steelmaking operations. Carbon Footprint: Absolute carbon emissions declined 3.1% YoY in 2025, representing a cumulative reduction of 47% from the 2018 baseline. It is noteworthy that, given the limited commercial-scale deployment of low-carbon technologies (green hydrogen, Carbon Capture and Storage), the Group's emissions reductions are currently achieved primarily through portfolio restructuring and EAF electrification . VIII. Additional Key Information Portfolio Optimisation: Full Acquisition of Calvert: By acquiring NSC's 50% equity stake, ArcelorMittal has gained full operational control of North America's most advanced flat-rolled steel finishing complex. Exit from Non-Core Assets: The divestiture of the high-carbon-intensity integrated steelworks at Zenica, Bosnia-Herzegovina, and associated iron ore mines reflects a "decarbonise first, then grow" portfolio strategy. Operational Risks: Geopolitical Risk: The Kryvyi Rih steelworks in Ukraine (AMKR) is currently operating at only 35% of rated capacity , facing significant logistics and supply chain disruption. Trade Barriers: US Section 232 tariffs were raised to 50% in 2025, increasing the cost burden on cross-regional material flows. 2026 Outlook: Global apparent steel consumption (ASC) ex-China is projected to grow 2% . The Group's capital expenditure plan for 2026 is budgeted in the range of US$4.5–5.0 billion , with continued focus on the Liberia iron ore expansion and the electrification of process technology in Europe. Summary: 2025 was a year of "deepening asset quality" for ArcelorMittal. By converting its core North American joint venture Calvert into a wholly-owned subsidiary, and achieving successful delivery milestones at the Liberia iron ore mine and India's green energy projects, the Group further consolidated its vertically integrated competitive advantages. For investors, the sustainability of free cash flow generation and the recovery of market share under the EU CBAM framework remain the key monitoring indicators over the next one to two years.

[SMM Steel] Italy’s crude steel output increased by 7.2% y-o-y to 1.93 million mt in April 2026, reaching the highest monthly level in the past four years, according to Federacciai. January-April steel production rose 2.9% y-o-y to 7.6 million mt. Long steel output remained the main growth driver, rising 12.3% y-o-y in April to 1.2 million mt, while January-April long product production increased 10.5% y-o-y to 4.6 million mt. In contrast, flat steel output continued weakening, falling 9.3% y-o-y in April to 743,000 mt, reflecting softer demand conditions in the European flat steel market.

[SMM Analysis] Overseas Steel Price Spread Continues to Narrow, Off-Season Impact Intensifies From the price spread model, the price spread between China and Indonesia steel billet continued to narrow, with China's offer raised while Indonesia's remained stable to slightly lower. Meanwhile, the driving force behind overseas steel price increases weakened somewhat, and the price spread continued to narrow. Notably, as India's domestic demand slowed down, Indian steel mills (such as RINL) began returning to the international market to compete for orders, causing the price spread between Indian and Chinese resources to narrow. By sub-market, last week in Southeast Asia: Formosa Ha Tinh Steel Corporation in Vietnam lowered its HRC offer for large-volume orders by $5-10/mt to $598-603/mt (CIF Vietnam), while offers from other origins remained largely stable amid limited buying interest and a lack of firm bids. In Vietnam's long steel market, market activity weakened due to persistent hot weather and soft construction demand, though government infrastructure projects continued to advance steadily. Market participants noted that long steel sales declined in May and may weaken further before the rainy season arrives in July. Although steel mills have not officially cut rebar prices, some have begun offering discounts of approximately 50-200 VND/kg ($2-8/mt) due to sluggish dealer demand. Meanwhile, in Indonesia, a steel mill lowered its export slab offer for July shipment by $5/mt MoM to $525/mt (FOB). Middle East: Last week, Saudi Arabia's HRC import market overall exhibited a strong tug-of-war between "firm cost side and weak end-use demand." Driven by geopolitical premiums and overseas supply-side price hikes, the overall center of import landed costs shifted upward, but downstream buyers had limited capacity to absorb high-priced resources, wait-and-see sentiment was strong, and actual overall trading activity during the week remained sluggish. Meanwhile, Middle Eastern geopolitical tensions continued to disrupt supply chains. Due to restricted passage through the Strait of Hormuz, overseas HRC resources destined for Saudi Arabia still heavily rely on the western port of Jeddah for delivery. Uncertainty in the logistics chain and freight premiums continued to strongly push up the landed cost of Asian resources into Saudi Arabia. In addition, Galva Hub, located within the Metal Park industrial zone in KEZAD, Abu Dhabi, has successfully completed operational testing of the region's largest galvanizing pot (accommodating nearly 900 mt of zinc) and is about to initiate zinc melting and enter the formal production phase, while deepening downstream supporting construction for employee accommodation projects. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. 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[Turkey] Recently, Turkish long steel giant Kardemir launched a new round of billet sales. By slightly lowering its list prices, the company rapidly attracted a large volume of domestic orders and subsequently closed the sale. The company offered S235JR grade billets at 530 USD/tonne (EXW), a decrease of 5 USD/tonne from the previous round, while B420 grade billets were priced at 540 USD/tonne (EXW), down by 10 USD/tonne.