Steel Market Morning Brief

Steel Product Market

◆ On October 8, the Steelhome Steel Benchmark Price Index (SHSPI) stood at 86.42 points (equivalent to RMB 3,737), down 0.13 points (RMB 6) from the previous trading day. Prices of major steel products in key markets edged down yesterday:

◆ Rebar prices showed more declines than gains. The average price of Φ20mm HRB400E rebar across 28 major domestic markets (hereinafter the same) was RMB 3,213 per tonne, dropping by RMB 2 per tonne.

◆ Medium‑heavy plate prices slipped slightly. The average price of 20mm Q235B medium‑heavy plate reached RMB 3,555 per tonne, down RMB 6 per tonne.

◆ Hot‑rolled coil prices moved lower moderately. The average price of 5.75mm Q235B hot‑rolled coil was RMB 3,304 per tonne, falling RMB 14 per tonne.

◆ Cold‑rolled coil prices dipped marginally. The average price of 1.0mm SPCC cold‑rolled coil stood at RMB 3,807 per tonne, a decrease of RMB 4 per tonne.

Raw Material Market

◆ On October 8, compared with pre‑holiday levels, the ex‑factory price of plain‑carbon billets in Qian’an, Tangshan fell RMB 30 to RMB 2,950‑2,960 per tonne, while spot billet prices dropped RMB 40 to RMB 3,010 per tonne.

Transactions for direct‑delivery billets remained sluggish. The basis spread between billet futures and spot saw no adjustment. Downstream finished steel sales were weak, and only a few rolling mills purchased billets. Short‑term billet prices are expected to stay weak.

Note: The billet index applies to 150×150 mm specification. All above prices are tax‑included cash ex‑factory prices; the stated billet cost index is tax‑exclusive.

◆ On October 8, the imported iron ore market declined. Steelhome 62% imported ore index (SHIOPI) fell USD 2.25 to USD 94.36; the 61% imported ore index (SHIOPI) decreased USD 2.24 to USD 91.77; the 65% domestic ore index (SHDOPI) went down RMB 5 to RMB 884.

◆ Steel mills have not fully resumed raw material procurement after the holiday, and expectations for demand improvement remain subdued. Spot trading at ports was thin. Although the market remains in a loose supply‑demand balance in the near term, iron ore prices have hit a yearly low. Some traders made small‑volume fixed‑price purchases of imported iron ore recently. In addition, domestic steel mills still have rigid restocking requirements post‑holiday, offering certain support to the market. Iron ore prices are projected to halt declines and stabilize in the short run, with the overall price centre edging upward slightly.

◆ From September 28 to October 4, total iron ore arrivals at six major domestic ports (Qingdao, Rizhao, Caofeidian, Tianjin, Jingtang and Lianyungang) totalled 10.77 million tonnes, down 5.019 million tonnes from the prior period. Arrivals at 46 major national ports reached 23.036 million tonnes, a drop of 5.355 million tonnes week‑on‑week.

Steel Mill Price Adjustments

◆ On October 8, 104 domestic steel mills revised their ex‑factory prices.

For full price‑adjustment details, please refer to the “Steel Mill Price Adjustments” column on Steelhome.

Industry News Highlights

◆ Market analysis meeting held by some coking enterprises on the afternoon of October 8 ◆ Donghai Special Steel: blast furnace under maintenance ◆ Jinxi Iron & Steel: maintenance on blast furnace, converter and H‑beam production lines ◆ Hegang Chengde Steel: blast furnace and converter resumed operation ◆ Laiwu Steel: H‑beam production line restarted ◆ Hubei Jinshenglan to build a new 4‑million‑tonne‑per‑annum 1680 mm hot‑rolled coil production line ◆ India’s Ministry of Steel to set up a safety committee for the steel industry