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The prices of domestic iron ore concentrates showed mixed trends last week, but the average price rose by 1.8%. The prices of iron ore futures and imported iron ore fell before rising last week, weighing on the prices of domestic concentrates in some regions. The domestic concentrate prices rose 70-90 yuan/mt in Shandong, Anhui and Hanxing, but dropped 20-30 yuan/mt in Hebei’s Tangshan, Liaoning’s Chaoyang.
Many blast furnaces in Hebei returned to production last week, boosting the demand for iron ore. A steel mill in Tangshan lowered its purchase price of Fe66% domestic concentrates by 30 yuan/mt to 1,100 yuan/mt (dry basis, including tax) due to the decline in imported ore prices, but failed to purchase enough concentrates. The mill currently only has inventory that is enough for 10 days of use and may have to raise its purchase prices this week as it plans to restart its blast furnace. Steel mills in Liaoning lowered their purchase prices at the beginning of last week, but will offer subsidies to their sellers on a 10-day basis.
With more steel mills resuming the operations of blast furnaces, it is expected that the domestic concentrate prices will continue to rise this week.