SMM

Domestic ore prices in the Tangshan region remained relatively stable, with the 66% grade dry basis tax-included delivery-to-factory price at 870-880 yuan/mt. Constrained by difficulties in sourcing low-cost raw materials, high risk of losses, and resistance in sales, concentrates production remained at a low level, and local capacity utilization rate stayed at a relatively low level. The significant decrease in iron ore concentrate supply has strengthened the market's price support at the lower end. Steel mills currently have moderate overall profits, and after the fourth round of coke price cuts took effect, steel mill profits rose slightly. Following the recent sharp decline in domestic iron ore concentrate prices, overall cost-effectiveness improved slightly, and steel mills slightly increased their procurement enthusiasm. Given the recent strengthening of the iron ore futures market, it may drive local iron ore concentrate prices upward. [SMM Steel]