Iron Ore Prices are Supported by Tight Regional Supply

SHANGHAI, Apr 10 (SMM) - Steel mills in west Liaoning frequently lowered their purchase prices of iron ore concentrate amid the deserted market, and traders were also more cautious in procurement. Considering that the weather will warm up later , the construction of projects in north China may be carried out successively, which may drive up the demand for concentrate and provide some support for the ore prices. Therefore, some dressing plants still held on to part of their inventory with optimistic market outlook. On the whole, local steel mills still intend to lower their purchase prices, but the downward room for price is limited and local iron ore prices may fall slightly in the short term.

The large mines in east China still maintain normal production. The inventory pressure of dressing plants is slight as they produce according to sales. Local steel mill still purchase as needed as the profits failed to recover significantly. It is expected that the local iron ore prices still have downside potential this week.

In general, domestic steel mills purchase as needed and the market will be relatively quiet in the short term. Although steel mills have a strong willingness to reduce costs, the iron ore prices are supported by the tight regional supply and may fall only slightly in the near future.