Steel Market Update

Advisory Bazaar Info Services

🔹 Iron Ore Futures Decline:

Iron ore futures fell on September 2. The January contract on the Dalian Commodity Exchange (DCE) declined 1.45% to 711.5 yuan ($105.84) per tonne. Meanwhile, the October benchmark on the Singapore Exchange fell 1.8% to $97.55 per tonne.

🔹 Pressure on Steel Mill Margins:

According to GF Futures analysts, rising coking coal costs are putting pressure on steel mill margins.

🔹 Coke Prices Rise for the Fourth Time:

Major coke plants have raised coke prices for the fourth time. Since September 1, coke prices have increased by 100–110 yuan per tonne.

🔹 Iron Ore Inventories Increase:

Iron ore inventories at major ports in Australia and Brazil increased by 1.33 million tonnes to 14.74 million tonnes, indicating a high level of supply in the market.

🔹 Strong Supply, Weak Demand:

Guoyuan Futures analysts noted a seasonal increase in iron ore shipments, pointing to strong supply alongside relatively weak demand.

🔹 Chinese Steel Mills Announce Maintenance:

Since August, 17 Chinese steel mills have announced production shutdowns for maintenance, which could impact steel supply in the coming period.

🔹 Mixed Raw Material Prices:

Prices of key steelmaking raw materials showed a mixed trend. Coking coal prices fell 0.27%, while coke prices increased 0.91%.

🔹 Steel Benchmarks Edge Lower:

Major steel benchmarks, including rebar, hot-rolled coil (HRC), wire rod and stainless steel, recorded marginal declines.

Market Outlook:

Rising iron ore supply and concerns over weak demand continue to weigh on the steel market. At the same time, higher coking coal and coke costs may further squeeze steel mill margins.