[Brief Commentary on Domestic Iron Ore] Prices of Iron Ore in Western Liaoning May Continue to Decline

The prices of domestically produced iron ore concentrates in west Liaoning have decreased by 5-10 yuan/mt. Currently, the ex-factory prices (excluding tax) for 66% grade wet-basis iron ore concentrates range from 705-710 yuan/mt. Recently, the market transaction atmosphere has been poor, and the cost-effectiveness of domestically produced iron ore concentrates has weakened. Steel mills have been more cautious in their procurement, with some reducing the proportion of domestically produced iron ore concentrates they use. Mines and beneficiation plants are mostly following market trends to sell their products, but overall sales have been sluggish, and there is a strong wait-and-see sentiment in the market. Considering the recent weak trend in the futures market for iron ore, it is expected that there may still be some downward space for local iron ore concentrate prices in the short term. [SMM Steel]