Driven by Pig Iron, Iron Ore Prices May Fluctuate Upward in the Near Future [SMM Commentary]

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Today, DCE iron ore fluctuated upward. The most-traded I2505 contract finally closed at 800.5 yuan/mt, down 0.44% throughout the day. Traders showed moderate willingness to sell. Steel mills remained cautious and inquiries were limited. The market trading atmosphere was moderate today. In Shandong, the mainstream transaction prices of PB fines were 788-792 yuan/mt, down 5 yuan/mt from yesterday. According to the SMM survey, as of January 22, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 85.60%, up 0.46 percentage points MoM. The capacity utilisation rate of blast furnaces was 87.85%, up 0.87 percentage points MoM. The daily pig iron production of sample steel mills averaged 2.3641 million mt, up 15,300 mt MoM. Currently, pig iron production at steel mills continues to rise, providing some support for the demand for iron ore concentrates. In the short term, iron ore prices are expected to fluctuate upward. 【SMM Steel】