[Brief Comment on Domestic Iron Ore Market] Iron ore concentrates prices in Shandong may have some room for upward adjustment

This week, mines and beneficiation plants in Shandong reported an ex-mine price of 777 yuan/ton (dry basis, before tax, acceptance) for 64% grade alkaline iron ore concentrates, holding steady compared to the previous period. Most mines and beneficiation plants maintained normal production. Following concentrated price cuts in the previous period, the purchasing enthusiasm of local steel mills improved somewhat. While large mines produced and sold as they went, their previous inventory levels also declined, with overall market transactions being moderate recently. Looking at this week: first, the cost-effectiveness of domestically produced iron ore has improved compared to the previous period; furthermore, the current iron ore futures market still has upward momentum, which may drive the domestic iron ore concentrates market. Considering all factors, it is expected that local domestically produced iron ore concentrates prices still have some room for upward movement. [SMM Steel]