Iron ore price in Tangshan still under downward pressure

SHANGHAI, Oct 11(SMM) –

Affected by the sharp drop in futures prices, steel mills in the Tangshan area lowered their purchase prices of iron ore concentrate by 20-25 yuan/mt. Beneficiation plants were pessimistic about the market outlook and reckoned that concentrate prices may fall in the future. However, as supply still faced shortage, some beneficiation plants held a wait-and-see attitude. Overall, beneficiation plants are mostly produced based on sales. In terms of demand, steel mills experienced increasing losses and tended to suppress raw material prices. If losses continue to intensify, local steel mills may cut production, which will be negative for ore prices. It is expected that local market may remain stable or move weaker after this round of price cuts.