Environmental Protection-Driven Production Restrictions for the 93 Parade Cause Iron Ore Prices to Remain in the Doldrums [SMM Brief Comment]

Today, the most-traded iron ore futures contract fluctuated rangebound, with the I2601 contract closing at 771, down 0.64% from yesterday. Traders sold according to market conditions, and some traders showed a strong willingness to sell; due to production restrictions at month-end, steel mills in north China had weak purchase willingness. The market transaction atmosphere was average. In Shandong, mainstream transaction prices for PB fines were around 768-771 yuan/mt, basically stable compared to yesterday's prices; in Tangshan, transaction prices for PB fines were around 780-785 yuan/mt, also basically stable compared to yesterday's prices.

According to an SMM survey, environmental protection-driven production restrictions during the 9.3 parade in Hebei have been largely confirmed. In addition to sintering machine production restrictions, blast furnaces in Tangshan and Handan will also be shut down, and some steel mills have already scheduled blast furnace maintenance, which is expected to significantly reduce hot metal production. Furthermore, transportation vehicles in the Beijing-Tianjin-Hebei region will face strict controls, leading to a noticeable suppression of short-term iron ore demand, and prices may continue to be in the doldrums.