SHANGHAI, Nov 23 (SMM) – The domestic iron ore concentrate price index stood at 802.37 yuan/mt last week, a drop of 6.7% from a week ago. The prices in various regions fell by 0-130 yuan/mt. The supply and demand both weakened.
The supply was tight as many dressing plants in Shanxi and Hebei either controlled or halted their production. Steel demand declined in winter. Although some blast furnaces resumed production in the heating season, the overall demand was still weak. In addition, the steel mills across Beijing, Tianjin and the surrounding 26 cities began to implement staggered production last week. The production restrictions on steel mills in north China have tightened amid hazy weather, hurting the demand for iron ore.
The domestic dressing plants lowered their concentrate prices along with the decline in imported ore prices, but this failed to attract steel mills as they reported thin profits or even losses.
SMM expects the domestic concentrate prices to remain under downward pressure in the short term as steel mills will turn even more cautious about purchasing amid the tightening production restrictions and continued decline in imported ore prices.
