Tangshan's environmental protection-driven production restrictions cause interference; iron ore prices are in the doldrums [SMM Brief Comment]

Published: Jul 1, 2025 17:15

Save

Today, DCE iron ore futures were in the doldrums, with the most-traded contract I2509 closing at 708.5, down 1.32% for the day. Traders' willingness to sell was moderate. Steel mills mainly purchased as needed, with inquiries being average. The market transaction atmosphere was average. In the Shandong region, the mainstream transaction prices of PB fines were around 700 yuan/mt, down 5-8 yuan/mt from yesterday's prices; in the Tangshan region, the transaction prices of PB fines were around 715-720 yuan/mt, down 5-10 yuan/mt from yesterday's prices.

Recently, there have been frequent reports of production cuts on the demand side. Today, the market has heard news that Tangshan will implement environmental protection-driven production restrictions in stages in July. It is understood that currently, steel mills are mainly focusing on production cuts and shutdowns of sintering machines and rotary kilns in the short term, while blast furnace maintenance plans have not yet been initiated. However, the market is concerned that this round of environmental protection-driven production restrictions may last for a relatively long time, potentially affecting pig iron production and thus reducing iron ore demand, dragging ore prices lower. SMM data shows that the impact from blast furnace maintenance increased MoM this week, and pig iron production faces a slight downward risk, which may suppress ore prices. Subsequent attention should be paid to changes in steel mill profits and weekly steel inventory levels.

》Subscribe to view SMM metal spot historical prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 6, 2026 18:30

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

Feb 6, 2026 18:30

Feb 6, 2026 18:09

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day.

Feb 6, 2026 18:09

Feb 6, 2026 17:41

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

Feb 6, 2026 17:41