Domestic Ore Prices Rose Sharply In September, And Are Expected To Fall In October

Published: Oct 12, 2023 10:11

Source: SMM

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In September, the average domestic ore price index increased by 52 yuan/mt. Since mid-September, some regions issued plans to combat air pollution in autumn and winter.

SHANGHAI, Oct 12(SMM) – In September, the average domestic ore price index increased by 52 yuan/mt. Since mid-September, some regions issued plans to combat air pollution in autumn and winter. Production restrictions targeted on sintering machine were launched again, mainly in Hebei area. Due to insufficient inventories of sinter ore in some steel plants, the proportion of pellets used increased, boosting demand for domestic iron ore concentrate. The sharp increase in the price of domestic ore led to a decline in its cost-effectiveness. As the National Day holiday approached, steel mills had a certain demand for stock replenishment, and the blast furnace operating rate remained at a high level, which also prompted demand. Overall, ore prices showed an upward trend in September.

Entering October, represented by the Shanxi region, due to serious losses in steel mills, local blast furnaces were overhauled successively, undermining demand for concentrates. If losses expand, steel mills in other regions may also take similar measures. Considering that the coming heating season and the potential crude steel output reduction, pig iron production is at risk of declining. The demand for iron ore concentrate may drop sharply, potentially weighing its price down.

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