[SMM Steel] India’s Kirloskar Ferrous Industries Limited (KFIL) plans to invest $52 million to increase its seamless steel tube production capacity from 371,000 tonnes/year to 400,000 tonnes/year. The company is also developing solar power projects expected to generate annual savings of around $10 million and plans to complete the integration of Oliver Engineering, a casting and machining company acquired in 2023. The move reflects KFIL’s continued focus on capacity expansion, cost optimization, and downstream value-added steel products.

German crude steel production has risen significantly since early 2026, surpassing 2022 output levels according to the German Steel Federation, even as the broader economy deteriorates sharply. The Federal Statistical Office reported nearly 500,000 jobs lost in Q1 2026, concentrated in manufacturing, construction, and trade, while insolvencies have hit their highest rate in over two decades per the Halle Institute for Economic Research. Industry analysts attribute the steel sector's divergence to EU trade defence measures and the Carbon Border Adjustment Mechanism shielding domestic producers from international competition — a dynamic critics argue defers rather than resolves the structural investment gap in European steelmaking.

[SMM Analysis] Stainless Steel Costs Edged Down with Prices Holding Steady, Steel Mill Profits Rebounded Slightly This week, stainless steel production costs edged down while prices remained generally stable, resulting in a slight expansion in steel mill profit margins. Using 304 cold-rolled as the calculation benchmark, the current raw material-based profit margin was 2.33%, while the low-level inventory raw material-based profit margin reached 3.39%. Nickel-based raw material costs: high-grade NPI prices edged up this week. Although the traditional consumption off-season for stainless steel was approaching, steel mills had limited acceptance of high-priced raw materials and adopted a cautious purchasing stance, with mediocre performance in transactions. However, supported by expectations of tight high-grade NPI supply, the market showed a strong willingness to hold prices firm, and prices remained firm overall. As of this Friday, mainstream 10-12% grade high-grade NPI rose 3 yuan per nickel unit, closing at 1,143.5 yuan/nickel unit. Stainless steel scrap market: stainless steel scrap prices pulled back slightly this week. Although SS futures edged up, the spillover effect was weak and difficult to transmit to the spot market. With the consumption off-season approaching, downstream purchasing attitudes were cautious, and finished product prices lacked upward momentum. The high-grade NPI rally slowed down with weak transactions, providing insufficient support from the raw material side. Compounded by unresolved tax invoice tightness, fermentation of rumors about steel mill production cuts in June, and weakening demand expectations, multiple bearish factors dragged down prices. However, stainless steel scrap still held an economic advantage over NPI, with the cost price spread providing a floor and limiting the downside. In the short term, constrained by tax invoice issues and weakening off-season demand, prices are expected to remain relatively stable going forward. As of this Friday, mainstream 304 off-cuts prices in Shanghai fell 100 yuan/mt, with the latest quote at approximately 10,350 yuan/mt. Chromium-based raw materials...

[SMM Stainless Steel Scrap Market Weekly Review] Off-Season Bearish Factors Dragged Stainless Steel Scrap Prices to Pull Back Slightly, Cost Advantages Held Up the Market Floor This week, prices of 304 stainless steel off-cuts in east China pulled back slightly, with a quotation range of 10,300-10,400 yuan/mt. Prices of the same-grade stainless steel off-cuts in Foshan remained stable, with a price range of 10,150-10,450 yuan/mt. From the perspective of raw material production costs, the cost of producing stainless steel entirely from stainless steel scrap was approximately 14,459.87 yuan/mt, while the cost of production entirely using high-grade NPI reached 15,149.69 yuan/mt. The price spread between the two remained considerable. Stainless steel scrap prices pulled back slightly this week. Although SS futures saw a slight upward probe during the week, the upward momentum from futures was relatively weak and difficult to transmit to the spot market. Coupled with the market gradually approaching the traditional consumption off-season for stainless steel, downstream end-user purchase sentiment turned cautious overall, and spot prices of finished stainless steel products remained largely stable, lacking upward momentum. Meanwhile, the pace of price increases for the alternative raw material high-grade NPI also slowed down simultaneously, with weak market transaction performance and insufficient overall support from the raw material side. Additionally, the long-standing industry issue of tight tax invoices remained unresolved, and news of production cuts and maintenance at individual stainless steel mills in June emerged. Market expectations for raw material demand weakened, and multiple bearish factors collectively dragged stainless steel scrap prices to pull back slightly during the week. Despite the slight weakening of scrap prices this week, stainless steel scrap still maintained favorable cost advantages compared to high-grade NPI. The significant production cost spread continued to play a substitution role, providing...

Tata Steel’s latest performance shows a company moving from a traditional volume-based steel business toward a more margin-focused and transformation-driven model. It is driving growth and profitability, financial performance is recovering through better margins and cost control, while the company’s key business activities are increasingly focused on downstream expansion, raw material security and low-carbon steelmaking.

[SMM Chrome Daily Review: Procurement of Ferrochrome Remained Stable for Now, Ore Prices Fell amid Inventory at High Levels] May 29, 2026: The ferrochrome and chrome ore market experienced slight fluctuations...

Outlook: Baosteel Ramps Up Production, Adding More Pressure to the Non-Oriented Silicon Steel Surplus Dilemma

【SMM Steel】Hoa Phat Group has proposed forming a joint venture with other major Vietnamese enterprises including Vinacomin and THACO to research and restructure the Thach Khe iron ore mine project in Ha Tinh province. The site holds over 500 million tonnes of reserves capable of supplying high-quality ore for premium steel production. The project has been stalled for 15 years due to environmental, safety, and infrastructure concerns. Hoa Phat argues that only large domestic firms have the necessary financial resources and expertise, and has offered to fund international mining and metallurgy experts to evaluate safety before proceeding.

【SMM Steel】China's Panhua Group is advancing its $1bn integrated steel project in Sarangani, Philippines. After commissioning a color-coated steel line in June 2025, a new galvanizing line is set to start in H1 2026. Panhua Chairman Xinhua Li expressed strong confidence in local manufacturing potential during a meeting with the Philippine trade secretary. Phase 1, focused on sheet manufacturing, has 2 million tonnes per year capacity and will create around 4,000 jobs. The full 3-phase complex will eventually produce up to 10 million tonnes per year of steel products including billets and galvanized steel, with at least 70% of output for export.

[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.