[Brief review of domestic ore] Steel mills’ purchasing slowed down and the inventory at the mine grew again

According to SMM research, the domestic mine capacity utilization rate was 70% from Apr 29 to May 5, a decrease of 2.7% WoW; the output of iron ore concentrate was 934,000 tons, a decrease of 37,000 tons WoW; the sales volume was 884,000 tons, a decrease of 157,000 tons WoW; the mine concentrate inventory was 480,000 tons, a cumulative inventory of 50,000 tons WoW.

Output: The output of iron ore concentrates declined slightly. During the May Day holiday, some plants were undergoing maintenance. In addition, some mines indicated that resources were tight and the grade of ROM was declining, so the output of concentrates declined. Overall, most mines are still in normal production. Next week, it is expected that the output of concentrate will remain stable, and there may be a small increase in concentrate in some areas.

Sales volume: During the holiday period, the sales volume of concentrate was obviously sluggish, and steel mills and traders had few inquiries and purchases; the current iron ore price was still high, the demand side is in a wait-and-see mood and the pace of procurement has slowed down; the ore selection side is still optimistic about the future market, and there is no rush to ship as the price is lower than expected, and inventory grew again; looking at next week, according to SMM's current tracking, the output of pig iron at steel mills is still showing an increasing trend, and there is still some support for the demand for iron powder, and the transaction volume of iron ore concentrate may improve.

On the whole, the supply at the ore selection is still tight, which provides certain support to the domestic ore price; on the demand side, the profits of steel mills have shrunk recently, and they are willing to lower the prices of raw materials. In addition, the recent trend of foreign futures is volatile. It is expected that both supply and demand sides will continue to gamble, and the domestic ore price may be dominated by strong fluctuations in the near future.