[Domestic Iron Ore Brief] There May Be Some Room for Price Increase of Domestic Iron Ore in West Liaoning

The supply and demand in the domestic ore market in western Liaoning showed some stalemate. The current ex-factory price for 66% grade iron ore concentrates on a wet basis, excluding tax, was 720-730 yuan/mt. Traders, considering their own profits and lacking steel mill orders, adopted a wait-and-see attitude toward the future market. In addition, some mines and beneficiation plants in parts of Hebei successively received notifications to suspend or restrict production, which would lead to a reduction in supply. As a result, local producers holding inventory had bullish expectations and temporarily held back from selling. Overall, market transactions were relatively sluggish. According to feedback from local mines and beneficiation plants, after the 25th, local authorities might impose restrictions on explosives, which is expected to tighten the supply of iron ore concentrates in the region and provide some support to prices. It is anticipated that there may be some room for price increases for local iron ore concentrates in the short term. [SMM Steel]