Domestic steel prices rise slightly as iron ore markets fluctuate

Reasonable demand, falling inventories and constrained capacity growth supported a slight rise in domestic spot steel prices. Iron ore markets fluctuated.

According to the latest market report cited from Mysteel, the domestic spot steel price composite index closed at 155.69, up 0.84% over the week. Billet prices and steel transactions weakened near the end of the preceding week, but steel futures strengthened at the following week’s opening. Price increases by leading domestic mills lifted both spot prices and trading volumes. Transactions slowed toward the weekend as prices reached higher levels.

Construction steel prices rose more noticeably. The average price of mainstream rebar specifications in major domestic markets was RMB 4245 per tonne, up RMB 69 over the week. Mill inventories fell faster than in the preceding week, encouraging mills to support prices. Social inventories declined steadily, and end-user demand remained reasonable despite the approaching seasonal slowdown.

Flat steel prices rose slightly overall. The average hot-rolled coil price for mainstream specifications in major markets was RMB 4328 per tonne, up RMB 13 over the week. Medium and heavy plate prices consolidated, with the average ordinary medium plate price at RMB 4463 per tonne, up RMB 2. Mills and traders faced limited sales pressure and were reluctant to cut prices.

Iron ore markets fluctuated. According to the cited Xiben report, iron concentrate prices in Hebei softened slightly, while most mills continued buying as needed. Imported ore prices edged up: as of the 14th, 62% grade imported iron ore was USD 66 per tonne, up USD 0.3 over the week. Prices were expected to continue consolidating within a narrow range.

Analysts expected hotter and wetter weather to slow end-user procurement. Both supply and demand in the domestic steel market showed signs of weakening, leaving traders somewhat more cautious.