Today, Dalian iron ore futures fluctuated rangebound, with the most-traded contract I2509 closing at 793, down 0.25% for the day. Traders sold goods according to market conditions, while steel mills purchased as needed.

[Domestic iron ore market brief: Iron ore concentrate prices in Tangshan region may continue to fluctuate at highs] Today, the domestic ore market in Tangshan rose slightly by 10-15. The current delivery-to-factory price for 66% grade dry-basis iron ore concentrates, including tax, is 950-955 yuan/mt. Steel mills currently have a relatively high production enthusiasm, with increased purchase frequency. Mines and beneficiation plants are holding firm on their asking prices, with some continuing to raise them. The enthusiasm for purchasing selected concentrates and trading at appropriate prices has improved.

According to SMM shipping data, as of July 31st, the total port departures of Chinese steel products in July reached 11.3646 million mt, down 1.55% MoM from June. Based on SMM's July steel export order data, due to the rapid increase in domestic prices, poor overseas demand, and low customer interest in high-priced resources, July's order intake declined significantly MoM from June. However, considering that on July 7th, 2025, the State Taxation Administration issued the "Announcement on Optimizing Matters Related to the Advance Payment of Corporate Income Tax Returns" (No. 17 of 2025), which will come into effect on October 1st, 2025, and taking into account the export time window, export traders may accelerate MD shipment loading in August. Therefore, SMM predicts that there may not be a significant decline in exports in August, while a more pronounced decline in exports may occur in September. 

After opening, DCE iron ore futures first fell and then rose. The most-traded contract I2509 eventually closed at 790.5, with a daily increase of 0.76%. Traders were enthusiastic about selling, while steel mills adopted a wait-and-see attitude, with weak purchase willingness.

[Domestic iron ore market brief: Iron ore concentrate prices in west Liaoning may decline slightly] The market prices of domestic ore in west Liaoning are relatively stable, with ex-factory prices (wet basis, excluding tax) for 66% grade iron ore concentrates ranging from 700 to 710 yuan/mt. The overall operating rate of mines and beneficiation plants remains low, and mines show strong reluctance to budge on prices.

According to the SMM survey, on August 6, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 86.89%, down 0.1 percentage point WoW. 

As of August 5, the operating rate of 50 electric furnace steel mills nationwide, which mainly produce construction steel, stood at 40.68%, up 2.86% WoW from the previous period; the capacity utilization rate was 41.2%, up 2.59% WoW; the daily average production of building materials was 91,600 mt, up 5,800 mt WoW.