Hot Metal Production Moves South, Supporting Iron Ore Prices to Fluctuate at Highs [SMM Brief Review]

Published: Nov 19, 2025 17:11

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Today, the most-traded iron ore futures contract continued to hold up well, with the most-traded contract I2601 closing at 791.5 yuan, up 0.76% from the previous trading day. Traders sold at market prices, while steel mills showed limited inquiries and purchased at lower prices. Overall market sentiment was moderate. In Shandong, PB fines traded at 785-795 yuan, basically flat from yesterday's transaction price; in Hebei, transactions were mainly for 60.8% PB fines at 795-800 yuan/mt, also basically flat from the previous day.

According to an SMM survey, as of November 19, the blast furnace operating rate at 242 steel mills MoM. Daily average hot metal production at the sampled steel mills was 2.3957 million mt, down 2,000 mt

MoM. Recently, some blast furnace maintenance plans have been delayed, resulting in a relatively small decline in hot metal output. Iron ore demand continues to provide strong support for ore prices. However, considering that iron ore supply is still growing and inventory pressure is gradually increasing, upside potential in the short term is limited, and prices may maintain a fluctuating trend rangebound.

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.

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