Steel Market Update

Advisory Bazaar Info Services

* Iron ore prices declined for the second consecutive session amid concerns over weaker demand in China, falling to around a one-week low.

* As of September 10, benchmark October iron ore on the Singapore Exchange fell 0.31% to $99.15/MT, after touching a low of $98.95/MT.

* Higher freight costs linked to elevated energy prices had kept iron ore prices above $100/MT for four consecutive sessions.

* On the Dalian Commodity Exchange, iron ore prices declined 0.81% to 731.5 yuan/MT, the lowest level since September 7.

* Analysts expect hot metal production to decline, a key indicator of iron ore demand, as rising coke prices are increasing losses for steel mills.

* As of September 4, only 30% of steel mills were profitable, down from 32.5% a week earlier and significantly below 61% a year ago.

* Other steelmaking raw materials also weakened, with coking coal down 1.53% and coke down 1.57%.

* Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar and hot-rolled coil prices declined, while wire rod and stainless steel posted marginal gains.

* The LME has announced the launch of a new steel contract on October 27, using prices from its Shanghai counterpart. The move is aimed at strengthening China’s influence in global commodity pricing.