Hot Metal Production Decline Widens, Iron Ore Prices Under Pressure at High Levels [SMM Brief Review]

Published: Nov 26, 2025 17:13

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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 797 yuan, up a slight 0.19% from the previous trading day. Traders sold at market prices; steel mills showed moderate inquiry activity and made purchases at lower prices. Overall market transaction sentiment was average. In Shandong, PB fines traded at 792-797 yuan, basically flat from yesterday's transaction price; in Hebei, PB fines traded at 800-805 yuan/mt, also basically flat from the previous day. According to an SMM survey, on November 26, the blast furnace operating rate at 242 steel mills tracked by SMM was 86.17%, down 0.43 percentage points MoM. Daily average hot metal production at the sampled steel mills was 2.3873 million mt, down 8,400 mt MoM. Approaching year-end, some steel mills have initiated annual maintenance plans, coupled with short-term blast furnace shutdowns due to environmental protection factors, leading to a slight pullback in overall hot metal production. Considering that some steel mills have already scheduled blast furnace maintenance plans for the near future, overall hot metal output is expected to continue its slight downward trend. The fundamental supply-demand balance for iron ore itself continues to weaken, keeping ore prices under pressure at high levels. Keep an eye on tomorrow's apparent steel consumption and inventory changes.

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