SMM

The Tangshan domestic ore market remained generally stable, with some prices rising by about 5 yuan/mt driven by price increases from steel enterprises. The delivery-to-factory price, tax included, for local 66% grade iron ore concentrates on a dry basis was 1,025-1,030 yuan/mt. Operations at local mines and processing plants showed no improvement, with low supply providing strong support to the market. There have been no new developments since the suspension of mining and processing operations, and the specific timing for production resumptions remains to be seen. However, as the shutdown period extends, the tight supply situation is unlikely to ease. Demand side, local steel mills are mostly operating normally as planned, and hot metal production remains at high levels. However, steel mill profits are currently significantly compressed, and mills generally have a strong desire to bargain down prices in procurement. It is expected that local iron ore concentrate prices will continue to fluctuate at highs in the short term. [SMM Iron Ore]