China Iron Ore Prices to Extend Gains, SMM Says

SHANGHAI, Nov. 29 (SMM) – Domestic concentrate prices advanced in most parts of China last week, and SMM expects a big chance for domestic ore to keep advancing this week. 

“Demand for domestic ore is strong due to cost efficiency and rising billet prices,” SMM iron ore analyst says. 

What Trigger Upward-Limit Gain in China Rebar Prices? SMM Reports

The robust demand explained the rise in concentrates price in most regions of the country, SMM survey finds. 

Moreover, low inventories at domestic iron mines also give a support to higher prices, SMM adds.However, SMM learns that some mills in Hebei have cut or suspended production after new environmental drive.

It was reported last Friday that sintering machines at steel mills in Tangshan, failing to meet environmental protection inspections, have been required to cut output by 50% until March 31, 2017. It is also rumored that approximately 50% of blast furnaces in Tangshan will be shut down.If it is true, production restrictions at steel mills in Tangshan will become stricter, a negative factor for domestic concentrates prices.

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