MMi Daily Iron Ore Report (December 19)

From March 7 to March 13, 2025, the total stainless steel inventory in the Wuxi and Foshan markets rose to 1.0117 million mt, up 0.63% WoW. Downstream purchases fell short of expectations, resulting in significant inventory pressure. Although the peak season of March and April has not yet materialized, demand is expected to rebound in mid-to-late March, which may alleviate inventory pressure. Moving forward, attention should be paid to the destocking of social inventory, steel mill production schedules, raw material prices, and the impact of macro policies on market inventory and prices.

This week, the high-nickel pig iron market continues to show an upward trend in prices. According to the latest data, the weekly average price of SMM 8-12% high-nickel pig iron reached 987.8 RMB per nickel point (ex-factory, including tax), an increase of 9.4 RMB per nickel point compared to last week. Meanwhile, the international market's Indonesia NPI FOB index also increased by 1 USD per nickel point over the past week. Overall, the price of high-nickel pig iron continues to maintain an upward trend.

This week, the average price of SMM 8-12% high-grade NPI reached 952.2 yuan per mtu (ex-factory, tax included), down 10 yuan per mtu compared to last week. Meanwhile, the Indonesian NPI FOB index decreased by $1.6 per mtu WoW. The decline in high-grade NPI prices slowed this week.Supply side, in the domestic market, due to the decline in finished product prices, smelters continued to operate at a loss, reducing production motivation and maintaining stable operations. On the other hand, in Indonesia, new capacity gradually increased. Despite the reduced profits from high-grade nickel matte, the motivation to switch to high-grade NPI production strengthened, leading to an overall expansion in production.

In this week's nickel market, the price of high-nickel pig iron continues to be under pressure with a widened decline. Specifically, the average price of SMM 8-12% high-nickel pig iron for the week was 1,005.2 yuan per nickel point (including tax, ex-factory), a decrease of 15.1 yuan per nickel point compared to last week. Meanwhile, the Indonesian NPI FOB index decreased by 3.9 dollars per nickel point compared to last week. This indicates an accelerated decline in high-nickel pig iron prices this week.

DCE iron ore futures rose largely today by 2.83%. Traders ship according to market conditions；steel mills inquiries decreased, resulting in poor purchasing enthusiasm.

DCE iron ore futures rose today, the main contract I2401 closed 975.5. an increase of 1.99% throughout the day. Traders ship according to market conditions.

Typhoon "Fireworks" landed strongly in Jiangsu and Zhejiang, and Zhejiang was first hit by storms.

Stainless steel consumption has improved significantly month-on-month in July, but remained weaker than the same period last year. Inventories extended declines, suggesting robust sales in major markets, but remained higher compared to July 2019, according to the recent SMM survey.

China’s imports and exports of stainless steel declined sharply in the first two months of 2020, due to the outbreak of the COVID-19 pandemic in the country. About 149,060 mt of stainless steel was imported to China in the January-February period, down 38.56% from the same period last year, while exports dropped 11.92% to 442,180 mt.

The affiliate of Pittsburgh-based AMG Resources Corporation has acquired 50% stake in its competitor business.