Steel Market Update

Advisory Bazaar Info Services

Iron Ore Market

* DCE Iron Ore Futures: The front-month I2609 contract settled at RMB 705/tonne, down 0.21% from the previous trading session.

* Spot Market: Iron ore spot prices at Qingdao Port remained broadly unchanged.

* East Liaoning Concentrates: Dry-basis, tax-inclusive EXW prices for iron ore concentrates edged lower to RMB 860/tonne.

* Domestic vs Imported Ore: The price spread is currently around RMB 60/tonne. Local steel mills are showing strong interest in negotiating lower prices, with the spread expected to narrow toward RMB 20/tonne.

* Supply: Local mines and beneficiation plants are selling normally at prevailing steel mill purchase prices.

* Outlook: With iron ore futures recently moving higher, the price gap between domestic and imported ore could narrow further. Downside potential for domestic iron ore concentrate prices appears limited.

Market Outlook

Overall, the iron ore concentrate market is expected to remain weak to stable with range-bound consolidation in the near term.