Steel Market Update

Advisory Bazaar Info Services

🔹 Iron ore prices moved higher after China’s central bank signaled potential monetary support.

🔹 On the Dalian Exchange, May iron ore rose 0.26% to 765 yuan ($110.63/ton), while the March contract in Singapore increased 0.17% to $100.35/ton.

🔹 China’s January inflation remained weaker than expected (CPI +0.2% YoY), while PPI fell 1.4% YoY, indicating the need for additional policy support.

🔹 Due to global anti-dumping measures and stricter production discipline, steel export volumes are expected to decline by around 30% by 2026.

🔹 Decline in raw materials:

• Coking coal ⬇️ 0.22%

• Coke ⬇️ 0.51%

🔹 Strength in steel products on the Shanghai Exchange:

• Rebar ⬆️ 0.26%

• HRC ⬆️ 0.37%

• Wire rod ⬆️ 1.42%

• Stainless steel ⬆️ 0.54%

Conclusion: Weak inflation and expectations of policy support may keep iron ore and steel prices firm, although export-related risks could create pressure ahead.