India’s finished steel exports reached 6.02 million tonnes during the April-February 2026 period, marking a significant 36.6% year-on-year increase. This surge is supported by an 11.2% rise in domestic crude steel production, which reached 153.61 million tonnes during the same timeframe. As domestic consumption grew by a more modest 7.2%, Indian steelmakers are increasingly utilizing international markets to balance supply, despite global overcapacity and margin pressures.

The Brazilian Steelmakers Association (IAB) reported that pig iron exports surged 49% in January 2026 to 408,000 tonnes. In February, average prices rose by $20/t to $430/t FOB. The price hike is attributed to seasonal rainy factors impacting logistics and increased demand from U.S. and European mills.

In January 2026, the European Union and India reached a historic Free Trade Agreement (FTA), with the elimination of steel tariffs of up to 22% becoming a major market focus. However, clearing the policy fog of "bilateral exemptions" and analyzing actual export and carbon emission data reveals that the steel industry faces a highly asymmetric trade reshaping. This seemingly fair reduction is actually Europe trading a "capped" ticket for India's "uncapped" massive incremental market.

Midrex and TOSYALI Algerie announced on January 28, 2026, that their Module 2 plant set a new world record for the highest annual production of Direct Reduced Iron (DRI) from a single module, produced 2.43 million tons of direct reduced iron. This achievement underscores the increasing competitiveness of gas-based DRI-EAF routes over traditional blast furnaces in North Africa, as global steelmakers face mounting pressure to reduce carbon intensity and move away from coal-dependent processes.

【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.

In the Union Budget 2026 presented on February 1, 2026, the Indian government increased the Tax Collected at Source (TCS) on the sale of coal and lignite from 1% to 2%. This measure is part of a broader fiscal strategy to simplify tax collection while managing the massive scale of domestic production. The change is expected to slightly adjust the procurement costs for Indian steelmakers who remain heavily reliant on coal-fired blast furnaces for their 164.9 million ton annual steel output.

[Brief Review of Domestic Iron Ore Market: Iron Ore Concentrates Prices in Shandong Region May Remain Stable] This week, miners in Shandong reported a price of 790 yuan per mt (before tax, dry basis, acceptance) for 64% grade alkaline iron ore concentrates, a decrease of 7 yuan per mt. Steelmakers also lowered their prices accordingly. Most miners are operating normally, with inventory levels at many miners declining, and a few dropping to around 10,000 mt, easing the pressure to sell. Small mills and traders are mainly selling based on market conditions. However, the cost-effectiveness advantage of imported ore still exists.

[SMM Steel Morning Meeting Summary] Last week, rebar prices first declined and then rebounded, with the nationwide average price at 3,097 yuan/mt, down 7 yuan/mt MoM. On the supply side, the third round of coke price reductions took effect last week, with raw material costs continuing to decline. The profit levels of many blast furnace steel mills remained around 100 yuan/mt. However, some steel mills arranged for regular maintenance and experienced sudden maintenance due to production restriction policies, leading to expectations of a continued decline in short-term production. Short-process steelmakers faced intensified losses, with some planning to halt operations, suggesting a potential further decline in the overall operating rate...

[Brief Review of Domestic Iron Ore Market: Iron Ore Concentrates Prices in Shandong Region May Remain in the Doldrums] This week, Shandong miners reported a price of RMB 865 (up by 21) for 64% grade alkaline iron ore concentrates, dry basis, tax excluded, and acceptance payment at the mine. Steelmakers also raised their prices in tandem. Most miners are operating normally, with overall local sales being average. Inventory has accumulated at some mines and beneficiation plants, while sales at small mills and traders have been relatively average. Currently, the cost-effectiveness of domestic iron ore concentrates has weakened.

[Brief Commentary on Domestic Iron Ore Market: Iron Ore Concentrates Prices in Shandong May Fluctuate Rangebound] In Shandong, the ex-mine price (dry basis, before tax, acceptance) of 64-grade alkaline iron ore concentrates from mines and beneficiation plants was reported at 797, down 7. Steelmakers have also lowered their prices in sync. Most miners are operating normally. Recently, some mines and beneficiation plants have launched sales promotions, leading to some improvement in local shipments. However, due to significant inventory accumulation in the early stage, the existing inventory has not been fully depleted yet. Shipments from small mills and traders have also improved somewhat.