SMM

Trading activity in the domestic ore market in western Liaoning remained sluggish. The current ex-factory price for 66% grade iron ore concentrates on a wet basis, excluding tax, stands at 740-750 yuan/mt. Iron ore concentrate resources are relatively tight, and mines and beneficiation plants have a strong tendency to hold back cargoes. As colder weather sets in, mining operations face restrictions, with some temporarily suspending production. Tight ROM resources have dampened production enthusiasm at beneficiation plants, and most maintain low inventory levels, supporting firm high price expectations from mines and beneficiation plants. Steel mills, on the whole, have not yet shown significant restocking operations and maintain a relatively strong desire to bargain down prices. In the short term, the market is characterized by weak supply and demand. Overall, it is expected that local iron ore concentrate prices may fluctuate in the near term. [SMM Steel]