HK Stock Market Move | Steel stocks collectively decline as institutional pricing rights game intensifies, with higher mineral prices suppressing steel price spreads.

Steel stocks collectively fell, as of the time of writing, APAC RESOURCES (01104) fell by 7.93% to HK$2.67; MAANSHAN IRON (00323) fell by 7.62% to HK$2.79; Angang Steel (00347) fell by 3.68% to HK$1.83; CHONGQING IRON (01053) fell by 3.17% to HK$1.22. Sinolink released a research report stating that the spring replenishment of steel mills for this year has basically ended, and the strength has further weakened compared to 2025; terminal demand is average, steel prices have not risen enough, leading to an average industry profit decrease of 31.7 yuan, with a current loss of 53 yuan per ton; the impact of failed expectations from important domestic policy meetings has been largely priced in, and factors such as geopolitical events causing stagflation expectations and upstream pricing power games squeezing price differentials constitute the current pressure on the performance of the steel sector. China Securities Co.,Ltd. stated that supply disruptions of iron ore have pushed prices up. However, port inventories remain high, with total import iron ore inventories at more than 170 million tons in 45 ports nationwide, a historical high, and a significant year-on-year increase, as the enormous inventory pressure continues to constrain the upside potential of prices. Looking ahead, in the short term, the iron ore market will continue to be dominated by emotions related to geopolitical conflicts and negotiation progress, with prices likely to maintain a volatile and slightly strong pattern, but with the upside limited by high inventories and weak reality.