Domestic iron ore prices tumbled last week, and may still weaken this week

Last week, the iron ore prices dropped by 90-100 yuan/mt in Qian'an and Qianxi county in Hebei province and fell 70-80 yuan/mt in Chaoyang, Beipiao, and Jianping city in west Liaoning province; but hiked by 5-10 yuan/mt in East China.
In Tangshan, concentrate trading activity appeared sluggish. No significant policy stimulus from the Two Sessions made most traders pessimistic about market outlook, and they awaited falling concentrate prices to the lowest prices. Losses tipped most integrated beneficiation plants into shutdown or wait-and-see mood, while beneficiation plants with mines actively shipped goods. Overall concentrate supply tightened.
In western Liaoning, trading activity was minimal. There were no inquiries from traders, even no buying appetites for some low-priced goods. Market bearishness fueling beneficiation plants in wait-and-see mood in a short run, while demand from steel mills was muted, aggressively lowering purchase prices. In addition, imported futures prices softened. Concentrate prices still had some room to dip.
In East China, beneficiation plants remained normal production, and mainly delivered long-term contracts amid price slip. Some beneficiation plants reported inventory backlogs. From the perspective of pricing, the average price index of imported ores nosedived last week. Iron ore prices may plummet this week.
On the whole, price rout kept some beneficiation plants shutdown, while some stayed on the fence. Low availability of ores appeared. Steel mills’ willingness to lower purchase prices was strong in a buyer's market. Domestic ore prices will still have some room to drop this week.