There are many reasons for the continuous decline in iron ore prices, the most important of which is that the national steel production restriction is continuing to advance. Major steel-producing provinces have successively planned to reduce crude steel production in the second half of the year to ensure the survival of the fittest, reduce production and improve quality. Recently, the Ministry of Ecology and Environment and other departments will work with relevant parties to formulate a production plan for peak shifting in autumn and winter for iron and steel enterprises.

In addition, the iron ore terminal demand is still in a state of strong expectation and weak reality. However, since the fourth quarter, the operating rate of steel mills in North China has been higher than that of the same period last year. Although steel mills are losing money, there has not been a large-scale initiative to reduce production, and the output of hot metal has stabilized recently. The acceptance of the charge end price increase in steel mills is acceptable, and the fourth round of coke price increase has started. At present, the iron ore inventory level of steel mills is at a low level, and the market still has expectations for iron ore replenishment before the holiday. The daily average amount of iron ore discharged by the port remained at a high level of about 3 million tons, and the port inventory continued to decrease slightly this week.