Weekly Summary of Raw Materials Market

Last week, the prices of various raw materials declined overall.

Imported Iron Ore: Prices initially fell but then rose. Despite a rapid fall in the foreign market, converted prices were lower than the port spot prices. Some steel companies and large traders began purchasing foreign iron ore at fixed prices, increasing transaction volumes. By mid-week, iron ore prices rebounded, with lump and pellet ore prices rising significantly. Port inventory, which had been increasing, started to decrease.
Domestic Production: The operating rate of domestic steel companies’ blast furnaces fluctuated slightly, and port inventory remained high. Some coastal steel companies maintained gross profits, though production cuts were rumored. The iron ore market price is expected to fluctuate slightly in the near term.

Stability with Decline: Domestic metallurgical coke prices were stable but declined. Central and southern region prices remained stable, while East, North, Northeast, and Northwest China implemented the second round of price cuts. The price for wet quenching coke fell by 50 yuan/ton and dry quenching coke by 55 yuan/ton.
Industry Response: Coke companies resisted the price cuts, with some agreeing to implement them from June 15. Inventory levels in the metallurgical coke industry chain decreased by 112,000 тонны. The coke inventory available for 80 steel companies decreased by 0.2 days. With futures prices higher than spot prices, further significant declines are unlikely. Domestic metallurgical coke prices are expected to remain stable.

Stability with Slight Decline: Domestic coking coal prices were stable with a slight decline. Online auction prices fell more than they rose. Low-sulfur coking coal prices in Shanxi fell by 30-50 yuan/ton. Lean coal prices also dropped, with surrounding coal mines following suit. Some coking enterprises, experiencing declining profits, reduced or stopped purchasing coking coal varieties that had not decreased in price. The inventory of coking coal at these enterprises is relatively low. Price reductions slightly improved shipment situations for some coal mines, limiting further price declines. The coking coal market is expected to remain stable but weak.

General Decline: Prices of various ferroalloy varieties were stable with a decline.
Ferrosilicon: Prices fell by 100-120 yuan/ton. Production increased slightly, and futures market prices fluctuated downward. The ferrosilicon market is expected to continue operating weakly.
Silicon Manganese: Prices initially rose but then fell, with ex-factory prices dropping by about 300 yuan/ton. Manganese ore prices at the port were stable. Silicon manganese prices are expected to fluctuate downward.
High-Carbon Ferrochrome: Prices were stable, with a new procurement price from Xinyu Special Steel set at 9,700 yuan/50 base tons, up by 370 yuan. Despite high production costs, price increases are limited. The high-carbon ferrochrome market is expected to remain steady.
Vanadium Alloys: Ferrovanadium prices fell by 1,000 yuan/ton, while vanadium-nitrogen alloy prices rose by 1,000 yuan/ton. Demand slightly increased with more steel companies entering the bidding market. The vanadium alloy market is expected to be stable and strong.
Molybdenum Alloys: Prices were stable, with the price of 60 molybdenum iron remaining steady. The transaction prices of high-grade molybdenum concentrates slightly increased. The cost of molybdenum iron manufacturers remains high, and quotations are firm. The price of molybdenum alloys is expected to be stable and rising.