Pig iron production increases slightly, iron ore rebounds slightly in the afternoon [SMM Brief Comment]

Today, the Dalian iron ore futures market was in the doldrums, with the most-traded I2509 futures contract closing at 702.5, down 0.43% for the day. Traders showed moderate willingness to sell. Steel mills maintained a cautious wait-and-see stance, though low-level inquiries remained acceptable. The market transaction atmosphere was moderate. In Shandong, mainstream transaction prices for PB fines hovered around 700 yuan/mt, largely stable compared to yesterday; in Tangshan, PB fines traded at approximately 710-715 yuan/mt, also holding steady from the previous day.

According to an SMM survey conducted on June 25, among 242 steel mills monitored by SMM,blast furnace operating ratestood at 87.96%, up 0.26 percentage points MoM. The sample steel mills' daily average pig iron production reached 2.4179 million mt, increasing by 9,500 mt MoM. This week, production resumptions were dominated by blast furnace restarts. Looking ahead, with expanding profit margins, additional blast furnaces are planned to resume production next week, keeping pig iron output at elevated levels in the short term and providing support for ore prices. However, given high production levels, weakening end-use consumption may trigger a turning point in inventory for the five major steel products, continuing to exert downward pressure on ore prices. Overall, ore prices face conflicting pressures in the near term, extending their fluctuating trend at lows.

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