China's iron ore prices may come under pressure in 2025 winter storage
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Update time : 2024-10-30 15:35:02
According to past winter storage history, China's iron ore prices often rise due to winter storage. Therefore, China's iron ore prices may be under pressure in winter storage in 2025 for the following reasons:
First, logistics is a key factor in steel mills' winter storage and replenishment. Because transportation is closed during holidays, steel mills are unable to replenish inventory in time and can only consume existing inventory. This will cause a tight supply of raw materials, which in turn affects costs.
Second, China's domestic mines seasonally reduce production in the fourth quarter of each year, increasing steel mills' procurement costs for raw materials.
Third, the downturn in the real estate industry has led to a decline in steel mills' revenue, affecting their cash flow, and the willingness and ability of steel mills to store in winter will be weakened.
However, due to the advancement of production facilities, China's domestic mines have improved their winter resistance, and some steel mills will respond to the decline in raw material inventory through peripheral purchases.
