SMM

Market transactions in the domestic ore market in western Liaoning were weak, with prices fluctuating slightly downward. The ex-factory price of 66-grade iron ore concentrates on a wet basis, excluding tax, was 680-690 yuan/mt. Local ROM resources were scarce, with most mine resources being supplied to their own beneficiation plants. It was difficult for local independent beneficiation plants to externally purchase ROM, and procurement costs were relatively high. Additionally, given the current weak market, a small number of producers chose to halt production for maintenance due to low profits from sales. On the demand side, some local steel mills experienced inverted profits, and their demand for iron ore was mainly based on purchasing as needed. Overall, market transactions were weak. In other news, it was reported that preliminary consensus had been reached in the Sino-US negotiations, boosting market confidence. Today, the futures market for iron ore rebounded, which may drive up the prices of local domestic iron ore. In the short term, it is expected that there will be some upward potential for the prices of local iron ore concentrates. [SMM Steel]