Domestic Iron Ore Prices Rose this Week, and to Grow Further next Week

Published: May 19, 2023 16:04
Iron ore price changes across China last week: Tangshan city, Hebei province: up 5-10 yuan/mt in Qian'an city and Qianxi county; West Liaoning: up 15-20 yuan/mt in Chaoyang city, Beipiao city and Jianping county; East China: up 5-10 yuan/mt.

SHANGHAI, May 19 (SMM) - Iron ore price changes across China last week: Tangshan city, Hebei province: up 5-10 yuan/mt in Qian'an city and Qianxi county; West Liaoning: up 15-20 yuan/mt in Chaoyang city, Beipiao city and Jianping county; East China: up 5-10 yuan/mt.

In Tangshan, the prices were on the rise affected by the continuous increase in overseas futures prices. The mines and dressing plants as well as spot traders took a wait-and-see approach amid low market supply. However, the demand from steel mills remained high. SMM believes that the iron ore prices in Tangshan will climb further thanks to the steel mills’ restocking.

In west Liaoning, iron ore concentrate prices increased slightly. The supply tightness and growing overseas futures prices boosted the confidence of mines and dressing plants. The local mines and dressing plants offered higher quotes than the market prices. On the demand side, steel mills and traders with low profit margins were less willing to raise their purchase prices, and they were more cautious about restocking goods at highs. The demand from steel mills will be high in the short term as the mills are unlikely to cut their production. It is expected that the local iron ore concentrate prices will increase further.

In east China, the large mines maintained normal production this week, and they shipped goods based on the actual output. Following the rise in the average price of imported iron ore this week, it is expected that the domestic iron ore prices in east China will go up as well next week.

The buyers and sellers are wrestling over the prices, but the downstream companies may purchase some spots, thus pushing up the iron ore prices.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Sheets & Plates Daily Review] Focus on Pre-Holiday Restocking Next Week
4 hours ago
[SMM Sheets & Plates Daily Review] Focus on Pre-Holiday Restocking Next Week
Read More
[SMM Sheets & Plates Daily Review] Focus on Pre-Holiday Restocking Next Week
[SMM Sheets & Plates Daily Review] Focus on Pre-Holiday Restocking Next Week
With no futures guidance today, spot prices mostly remained stable. In terms of supply, new maintenance for hot rolling was limited, and overall production continued to increase. Rolling line maintenance next week is expected to decline WoW, leaving hot coil supply pressure relatively loose. On the demand side, with no futures trading today, the spot market was relatively stable, with no significant purchasing demand released, and pre-holiday restocking remained sluggish. From the raw material side, pre-holiday restocking is nearing its end, and short-term hot metal rigid demand remains resilient. The probability of raw material prices breaking downward before the holiday is relatively small, but there may be negative feedback risks after the holiday. Looking ahead, after the September 17 thermal coal supply guarantee news was released, the specific implementation still needs to be observed after November. Next week's market focus will be on the release of pre-holiday restocking demand both domestically and internationally. In summary, the most-traded hot coil contract may have some room for a rebound next week.
4 hours ago
[Domestic Iron Ore Concentrates Briefing] China's iron ore concentrates prices are likely to consolidate on a subdued note
4 hours ago
[Domestic Iron Ore Concentrates Briefing] China's iron ore concentrates prices are likely to consolidate on a subdued note
Read More
[Domestic Iron Ore Concentrates Briefing] China's iron ore concentrates prices are likely to consolidate on a subdued note
[Domestic Iron Ore Concentrates Briefing] China's iron ore concentrates prices are likely to consolidate on a subdued note
Domestic ore prices diverged this week; iron ore concentrate prices in Hebei fell by 10-20 yuan/mt, while prices in Liaoning remained relatively stable. Overall, iron ore concentrate resources were relatively tight, providing some support to local prices. On the demand side, steel mills saw deepening losses and mainly purchased iron ore concentrates as needed, with a relatively strong desire to bargain down prices.
4 hours ago
[SMM Coking Coal and Coke Daily Briefing] 20260920
4 hours ago
[SMM Coking Coal and Coke Daily Briefing] 20260920
Read More
[SMM Coking Coal and Coke Daily Briefing] 20260920
[SMM Coking Coal and Coke Daily Briefing] 20260920
4 hours ago