SMM Daily Comment On Domestic Iron Ore Market (Sep 12)

SHANGHAI, Sep 12(SMM) – At the beginning of this week, Tangshan iron ore concentrate was basically stable. Steel mills had not finalized purchase price yet, and traders mainly restocked based on orders, and inquiry prices were lower than expected. Due to thin profits, beneficiation plants held low enthusiasm for increasing production. Some beneficiation plants in Zunhua even planned to suspend production. Five mines gradually resumed production after obtaining regulatory approval, but did not reach full capacity. There are rumors that local mines with an annual output of 300,000 mt may be on the list of second batch of mines that are allowed to resume production, but the possibility is low and this won’t have a large impact on supply in the short term. Tight supply will provide support for prices. Considering losses, steel mills are trying to push down prices, but low-price purchases are difficult to achieve. Therefore, iron ore market is expected to remain in a sideways movement recently.