MMi Daily Iron Ore Report (Sep 4)

[China Iron Ore Brief] The EXW price of 65% grade iron ore concentrates in the Chengde area, on a dry basis and tax-inclusive, remains at 925 yuan/mt. According to SMM tracking, following successive accidents at mines in the Kuancheng region of Chengde, local mines and beneficiation plants are currently in a state of suspension. This has intensified the overall tightness of local iron ore concentrate resources, providing strong support for local iron ore concentrate prices. On the demand side, steel mills and traders mostly purchase as needed, with a strong overall desire to bargain down prices.

[Sichuan-Yunnan Silicon Enterprises’ Operating Rate Increase Puts Silicon Metal Market Under Pressure]: On the supply side, the rainy season production resumptions at silicon enterprises in Sichuan and Yunnan have pushed operating rates higher. From a supply-demand balance perspective, the silicon metal supply growth outpaces demand growth in June-July, leaving theoretical industry inventory in a buildup state. Fundamentals are weak, and coupled with a lack of recent positive news to provide a boost, the silicon metal market lacks sufficient upward momentum and has limited downside support from costs. Overall, prices are in the doldrums within a narrow range.