Today, Dalian iron ore futures held up well during the session but dived at the close. The most-traded contract I2601 eventually closed at 795, unchanged from yesterday. Traders' willingness to sell was moderate; steel mills restocked on demand.

[Brief Comment on Domestic Iron Ore Market: Prices of Iron Ore Concentrates in West Liaoning May Have Room for Further Increase] The market price of domestic ore in west Liaoning is relatively stable, with the ex-factory price (66% grade, wet basis, excluding tax) ranging from 710 to 720 yuan/mt. Mines and beneficiation plants have a strong tendency to hold back cargoes, with only a few considering capital turnover and selling at appropriate prices. Traders, considering costs and with sufficient inventory, have low purchase willingness for prices higher than their psychological expectations. Currently, steel mills are operating normally.

According to the SMM survey, as of August 13, the operating rate of blast furnaces at 242 steel mills surveyed by SMM was 86.49%, down 0.4 percentage points WoW.

As of August 12, the operating rate of electric furnace steel mills, which are the main producers of building materials, across 50 steel mills nationwide stood at 39.9%, down 0.78% MoM from the previous period. The capacity utilization rate was 40.63%, down 0.52% MoM. The daily average production of building materials was 90,500 mt, down 1,200 mt MoM.

Guidelines for the Establishment of Benchmark Prices for the Sale of Metallic Mineral and Coal Commodities (No. 268.K/MB.01/MEM.B/2025)