[SMM Survey] Mines and Beneficiation Plants Accelerated Resumption, Bringing Slight Increases in Iron Ore Concentrate Production

According to the SMM survey, last week, the domestic mines' capacity utilisation rate was 59%, up 2.4% WoW. Iron ore concentrate production was 788,000 mt, up 33,000 mt WoW; sales were 755,000 mt, up 5,000 mt WoW; and inventory of iron ore concentrates was 240,000 mt, up 10,000 mt WoW.

Production: Last week, major domestic mines saw an increase in iron ore concentrate production. Firstly, mines in Hebei resumed production after previous suspensions, leading to a noticeable increase in iron ore concentrates. Additionally, the impact of heavy rain diminished, allowing some mines in Liaoning to resume normal operations. This week, it is expected that domestic mines will mainly maintain normal production, with stable output.

Sales: Recently, there has been no significant improvement in the sales of domestic iron ore concentrates. Firstly, current domestic iron ore prices are below the mines' expectations, resulting in a weak willingness to sell. Secondly, steel mills are under profit pressure and mainly restock as needed, leading to weak overall demand. As the National Day holiday approaches, steel mills have some restocking needs, and market transactions are expected to improve, potentially reducing mines' iron ore concentrates inventory.

Overall, domestic iron ore concentrates remain tight, providing some support for prices. As the National Day holiday approaches, steel mills are expected to restock, offering some short-term upward potential for domestic iron ore prices.