The average price index of domestic iron ore increased by 9 Yuan/mt in February. In the first half of the month, ferrous metals futures prices showed improvement due to finished product inventory pressure suffered by steel mills, lower-than-expected rebar sales and interest rate hikes by the US Fed. The damaged factories aimed to reduce the purchase prices of iron ore.
Iron ore prices recovered in the second half of the month. Profit margins of steel mills and sales of rebar increased. Also, factories were expecting the macro front to be favorable between the Two Sessions.
In March, on the other hand, iron ore prices will hardly increase at all, according to the forecasts of the relevant departments since prices increased at the beginning of the month. Due to the mining accidents that have occurred in recent days, iron ore resources have gradually decreased and this has created a certain support for prices. In addition, the increase in rebar sales and the expected growth of pig iron production are also seen as a sign that domestic iron ore demand will increase.
In addition, the market expects the introduction of supportive policies in the Two Sessions. In general, domestic iron ore prices may fluctuate at a high level in March.