Brief Review of Domestic Iron Ore: Iron Ore Concentrate Prices in Shandong Region May Slightly Increase

This week, Shandong miners quoted the 64-grade alkaline concentrate at 850 yuan/mt, up by 16 yuan/mt on a dry basis, ex-mine, pre-tax, and on acceptance terms. Steel mills followed suit with price adjustments. Most miners maintained normal production, and shipments improved WoW, with inventory declining. Steel mills showed strong purchasing enthusiasm, mostly maintaining long-term contract procurement, with inventory maintained at around 5 days. Small mills also saw improved shipment enthusiasm, and overall weekly transactions slightly improved. On the mines and beneficiation plants side, a major mine in Linyi resumed partial production, with daily average pig iron production at 3,000 mt, easing the local resource tightness trend. This week, with pre-Labour Day holiday stockpiling and meeting expectations still in place, coupled with the recent strengthening of the iron ore futures market, it is expected that local iron ore concentrate prices may have some room for a slight increase in the short term. 【SMM Steel】