MMi Daily Iron Ore Report (December 12)

During the survey period (February 24 to March 2), the operating rate and capacity utilization rate for rebar rolling lines in the Central China region remained unchanged WoW, with steel mills largely maintaining their previous production pace. In terms of factory inventory, most downstream construction sites resumed work after the Lantern Festival, and currently, the ability to absorb rebar demand is limited, leading to a continuous accumulation of inventory.

Today, DCE iron ore futures trended stronger today, with the most-traded I2605 contract closing at 754.5 RMB/ton, an increase of 0.87% from the previous trading session.

[Domestic Iron Ore Brief: Shandong Region Iron Ore Concentrates Prices May Have Some Upside Potential] In the west Liaoning region, domestic iron ore prices remained relatively stable, with 66 grade iron ore concentrates wet basis ex-factory prices at 745-755 yuan/mt; feedback from local mines and beneficiation plants indicated that during the Two Sessions next week, there may be some restrictions on explosives, further exacerbating the overall tightness of iron ore concentrates resources. Demand side, local steel mills are currently operating according to plan