Stocks at domestic iron ore mines significantly dropped in November

SMM research indicates a November decrease in domestic mines’ iron ore concentrates inventory, down 190,000 mt to 902,000 mt MoM. Inventory days also dropped by 0.8 to 3.64 days.

In November, domestic concentrates prices surged, boosting mine profits and shipment willingness. Despite high national demand for concentrates due to high blast furnace operating rates, some mining and beneficiation processes were obstructed, leading to shipments primarily from inventory. In areas like Anhui and Jiangsu, high local concentrates prices discouraged steel mills from purchasing, slightly increasing inventory. Nonetheless, November saw an overall inventory decrease.

Expectations are for a continued decline in domestic mine inventory in December, primarily due to high blast furnace operating rates and strong demand for concentrates. Given that domestic concentrates still outperform imported ore in terms of cost-effectiveness, steel mills could possibly increase their use of domestic concentrates later on.