Recent Increase in Pig Iron Prices Provides Support for Iron Ore Prices [SMM Commentary]

Published: Mar 18, 2025 17:03

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Today, DCE iron ore fluctuated downward. The most-traded contract I2505 closed at 777, down 0.58% for the day. Traders showed weak enthusiasm for selling; steel mills restocked as needed; and market transaction sentiment was average. Mainstream transaction prices fell by 0-5 yuan/mt compared to yesterday. This week, the blast furnace maintenance impact tracked by SMM was 1.4835 million mt, down 95,500 mt WoW. It is expected to continue decreasing next week. Pig iron production has increased rapidly over the past two weeks, providing some support to ore prices. However, considering the market's pessimism regarding end-use demand recently, the resistance to ore price increases remains significant, and short-term fluctuations are likely to continue.

Today, iron ore futures fluctuated downward. The most-traded I2505 contract closed at 777 yuan/mt, down 0.58% for the day. Traders showed weak enthusiasm for selling; steel mills restocked as needed; and market transaction sentiment was average. In Shandong, the mainstream transaction prices for PB fines were around 777-780 yuan/mt, stable compared to yesterday's prices. In Tangshan, PB fines transaction prices were around 785 yuan/mt, down by 0-5 yuan/mt from yesterday. This week, the impact from blast furnace maintenance tracked by SMM was 1.4835 million mt, down 95,500 mt WoW. It is expected to continue decreasing next week. Pig iron production has increased rapidly over the past two weeks, providing some support to ore prices. However, considering the market's pessimism regarding end-use demand, the resistance to ore price increases remains significant, and short-term fluctuations are likely to continue.

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