Daily hot iron production reached 2.3584 million tons (mt) on October 21, 2026, showing an increase of 6,400 tons compared to the previous day. This increase in production comes as the operating rate of blast furnaces has reached 87.16%.
Price and Demand Analysis
Despite a slight improvement in demand, prices did not consistently rise. Various indices, including 61%, 58%, and 65%, increased by 1 yuan each at the ports, while wholesale prices on the Dalian Commodity Exchange (DCE) remained at 681.5 yuan per ton. In contrast, the marine indices 61% and 65% declined, reaching 90.40 and 107.40 dollars per ton, respectively.
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Challenges and Factors Affecting the Market
A decrease in the arrival of new shipments to the market reduces pressure from incoming flows, while current inventories at ports require actual collection to be absorbed. Additionally, rising transportation costs may change the cost conditions for some shipments, and iron ore prices and transportation costs do not always move in tandem.
The short-term focus is on whether the improved production translates into stable transactions. Purchases that only seek current consumption may keep prices within a range, while stronger revisions and orders will provide more support for prices. Furthermore, a single increase in hot iron production cannot establish a trend change, and transactions, production, and inventories must be evaluated simultaneously.
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