Imported ore: On September 7, the spot market for imported iron ore was weakly active, traders were generally motivated to make offers, and steel mills' inquiries were acceptable. At present, iron ore disks are repeated and the spot market fluctuates greatly. Under the background of limited production, traders mostly focus on shipments, and the pace of procurement by steel mills on demand remains unchanged.
Coke: On September 7, the market operated stably. On the supply side, there is a regional differentiation. The average start-up level of Shanxi coking enterprises is 88.8%. Except for individual enterprises in Linfen, where production is restricted, most of them start normally. The sales of coke enterprises are good, with low or no inventory in the factory. Coking production restrictions in Shandong have become stricter. Coking companies in Jining, Heze, Taian and other places have expanded their ovens. The remaining coking companies have reduced production to varying degrees, mostly by about 50%. The coke supply has dropped significantly compared with the previous period. In terms of demand, downstream steel mills have reduced their crude steel production requirements, and some steel mills’ blast furnaces have also reduced production. However, there is no large-scale centralized production restriction. The demand for coke is slowly declining. The current coke supply and demand market is still tight. The rising trend of listed coal prices this month has slowed down, but the overall price of coal entering the furnace is still high, supporting coke prices. The current coke price has reached historical highs, and steel mills are also resistant to frequent price increases, so beware of the risk of market corrections.
Scrap steel: On September 7, the scrap market price remained stable. The scrap price of mainstream steel mills remained stable, and the scrap price of the mainstream market remained stable. Some steel mills are optimistic about the arrival of the "Golden Nine and Silver Ten", so they prepare warehouses in advance to meet production needs. Affected by the recent increase in the black market, traders are more optimistic and hope that their mentality will increase, downstream orders are improving, and the fundamentals of supply and demand have a positive trend. Driven by profits, steel mills are more enthusiastic about production, and market resources are tight to support scrap prices.
