Last week, performance across various segments of the domestic raw materials market was mixed. Iron ore prices rose overall; metallurgical coke began its first round of price cuts; coking coal prices remained stable with a downward bias; and prices for most ferroalloy varieties trended upward. During this period, price movements for key commodities were as follows:
1.Iron Ore Prices Fluctuate Upward; Transaction Volume Declines
Last week, iron ore prices fluctuated upward. While overall transaction volumes in the seaborne market increased initially, volumes declined significantly following the rapid surge in prices. A few steel mills continued to replenish their inventories, but the majority maintained their stock levels at the lower end of the normal range. In the Tangshan region, production restrictions on sintering operations at certain steel mills led to a relatively larger price increase for lump ore. However, with iron ore inventories at major ports remaining at persistently high levels—coupled with the slow pace of production restarts at steel mills and their low enthusiasm for procurement—upward pressure on iron ore prices faced significant resistance. It is anticipated that the upward momentum in iron ore prices will moderate in the near term.
2.Metallurgical Coke Prices Decline Last week, metallurgical coke prices trended downward. Steel mills lowered their procurement prices for metallurgical coke, marking the full implementation of the first round of price cuts across the market. For coke producers that set their own prices, metallurgical coke rates remained stable; similarly, for steel mills that set their own procurement rates, buying prices held steady. With coking coal prices seeing more declines than gains, the cost-side support for metallurgical coke prices has weakened. Currently, most coke producers are hovering near the breakeven point or operating on thin margins; however, they are generally maintaining a normal production pace, resulting in minimal fluctuations in the overall supply of metallurgical coke. Influenced by declining steel prices and lackluster performance in downstream consumption, steel mills are largely restricting the intake of metallurgical coke deliveries. Consequently, inventories at coke production plants continue to accumulate, leading to a further loosening of metallurgical coke supply. It is projected that the domestic metallurgical coke market will operate with a stable-to-weak bias in the near term.
3.Coking Coal Prices Stable with a Downward Bias Last week, coking coal prices remained stable with a slight downward bias. Transaction prices in online auctions showed mixed results—rising in some instances and falling in others—while the overall transaction rate edged up slightly to 74.58%. Currently, with profit margins for coke producers narrowing, procurement activities are driven primarily by immediate, essential needs; consequently, there remains an expectation among buyers that coking coal prices will see further reductions. It is anticipated that coking coal prices will continue to exhibit a stable-to-weak trend in the near term. Prices of Various Ferroalloy Grades Predominantly RiseLast week, prices across various ferroalloy grades were predominantly on an upward trend. Prices for the raw material—manganese ore—continued their firm upward trajectory, while chemical coke prices declined. In the short term, expectations persist regarding an increase in regional supply, though regional operating rates remain at relatively low levels. Currently, raw material costs are providing strong support to prices; however, steel mills have made limited purchases recently, and actual transaction volumes in the spot market are still in the process of gradually recovering. Consequently, the upward momentum in ferromanganese prices is expected to moderate in the near term.
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