SMM

Recently, prices of domestic iron ore concentrates in Tangshan rose slightly by 5-10 yuan/mt. The delivery-to-factory price, tax included, for 66% grade iron ore concentrates was 985-990 yuan/mt. Yesterday, iron ore futures rose sharply, boosting the pricing confidence of local mines and beneficiation plants. Coupled with relatively tight supply of local iron ore concentrates, sellers were unwilling to sell at prices below their psychological expectations. Buyers still had a strong overall desire to bargain down prices, but steel mills currently hold certain restocking expectations, driving prices upward. However, today, market news indicated that negotiations between domestic and overseas mines have concluded, and iron ore futures began to pull back, which may affect domestic concentrate prices. Overall, it is expected that local iron ore concentrate prices will remain volatile in the short term. [SMM Steel]