SMM

At the beginning of the week, the iron ore concentrates market in Tangshan was relatively stable, with delivery-to-factory prices for 66% grade dry-basis iron ore concentrates (tax included) ranging from 940 to 945 yuan/mt. Influenced by the optimistic outcome of the China-US tariff negotiations, market sentiment was relatively optimistic in the short term. Mines and beneficiation plants had a strong wait-and-see sentiment and a strong sentiment to stand firm on quotes. The current inventory levels at steel mills were relatively low, mostly sufficient for 5-7 days of production, indicating a certain expectation for restocking. Despite the news about the potential reduction in crude steel production, according to SMM's tracking, the likelihood of concentrated production restrictions at steel mills in the short term was low. Pig iron production from blast furnaces remained at a relatively high level, providing certain support for the demand for iron ore concentrates. Coupled with recent positive external news, it is expected that there may be an upward price movement of 10-15 yuan for local iron ore concentrates in the short term. [SMM Steel]