[Brief Comment on Domestic Iron Ore Market] Prices of iron ore concentrates in the Tangshan region may be in the doldrums

Iron ore concentrate prices in the Tangshan region remained relatively stable, with delivery-to-factory prices for 66% grade dry-basis material (tax included) ranging between 870-880 yuan/mt. Mines and beneficiation plants continue to operate at a low overall utilization rate, exacerbating resource tightness. Following recent concentrated price reductions for domestic iron ore concentrates, their cost-effectiveness has improved compared to the previous period. However, steel mills still prioritize imported ore for procurement and mainly adopt a purchasing-as-needed approach for domestic iron ore concentrates, keeping domestic inventories at a low level. Combined with recent volatile movements in the iron ore futures market, local iron ore concentrate prices are expected to remain in the doldrums in the short term. [SMM Steel]