SMM

Domestic Ore The prices of iron ore concentrates in the Tangshan region remained basically flat compared to pre-holiday levels. The delivery-to-factory price of local Fe66% iron ore concentrates (dry basis, tax-included) was 960-970 yuan/mt. The Tangshan iron ore market has not fully resumed operations, and iron ore resources remain tight. Steel mills showed weak purchase willingness overall, with most opting to observe the market before restocking. Overall, market transactions were relatively sluggish. Demand side, the market has not yet picked up, and it is expected that the local iron ore concentrates market will continue to fluctuate downward in the near term. Imported Ore On the first trading day after the holiday, traders actively offered goods. Steel mills made numerous inquiries but were cautious in their purchases. Market transactions were sluggish today. In Shandong, the mainstream transaction prices of PB fines were 790-795 yuan/mt, basically stable compared to pre-holiday levels. In Tangshan, PB fines were transacted at around 815 yuan/mt, also basically stable compared to pre-holiday levels. According to an SMM survey, as of February 5, the operating rate of blast furnaces at 242 surveyed steel mills was 85.97%, up 0.37 percentage points from pre-holiday levels. The daily pig iron production of the sample steel mills was 2.3791 million mt, up 15,000 mt WoW. Pig iron production increased slightly. Coupled with post-holiday restocking demand from steel mills, overall demand for iron ore remained strong, providing some support for ore prices. However, during the holiday, the US announced a 10% tariff increase on Chinese goods, which disrupted futures prices. Additionally, downstream real demand is still in the verification phase, and market sentiment appeared slightly pessimistic. In the short term, the tug-of-war between longs and shorts is expected to continue, and ore prices may fluctuate rangebound. Coking Coal The quotation for low-sulfur primary coking coal in Linfen was 1,400 yuan/mt, while in Tangshan, it was 1,500 yuan/mt.