[Brief Review of Domestic Iron Mines] Prices of iron ore concentrates in the Tangshan region may be in the doldrums

In the Tangshan region, the prices of iron ore concentrates remained generally stable. The delivery-to-factory prices for 66% grade dry-basis iron ore concentrates, inclusive of tax, continued to hover at 920-925 yuan/mt. Both supply and demand sides maintained a wait-and-see sentiment, with trading activity remaining relatively sluggish. The overall operating rates at mines and beneficiation plants remained at a relatively low level. Major mines were still enjoying a profit margin of 100-200 yuan, while many concentrates plants were operating at a loss. Overall, resources remained relatively tight. On the demand side, local steel mills have been successively formulating their annual maintenance plans recently, leading to a weakening of demand support. Moreover, their demand for domestically produced iron ore concentrates is primarily driven by purchasing as needed, resulting in a situation of weak supply and demand in the market. Considering the recent weak trend in the futures market for iron ore, it is expected that the prices of local iron ore concentrates may continue to be in the doldrums in the short term. [SMM Steel]