​ Domestic Pig Iron Market Maintains Stable and Cautious Trend Today

Macro Overview: According to the Henan Provincial Center for Environmental Monitoring and Safety, adverse weather conditions may cause moderate to severe pollution in some areas of Henan starting November 4. In response, Luoyang, Jiaozuo, and Jiyuan launched an Orange (Level II) Heavy Pollution Weather Alert at 0:00 on November 4; the end time will be announced separately. The China Federation of Logistics & Purchasing reported that China’s Logistics Prosperity Index for October was 50.7%, down 0.5 percentage points month-on-month. Although the total logistics business volume index experienced a slight decline, overall demand remains in an expansionary phase.

Futures Market: At the close of trading, major iron and steel futures exhibited volatility with a downward trend. Iron ore fell 13.5 points to 775.5; coke dropped 42.5 to 1,729; coking coal decreased 32.5 to 1,253; rebar declined 44 to 3,044; and hot-rolled coil slipped 34 to 3,265.

Cost Dynamics: Steelmakers accepted the third round of coke price increases. Mainstream mills in Tangshan, as well as some in Xingtai, Tianjin, and Shijiazhuang, plan to raise wet coke prices by CNY 50/ton and dry quenched coke by CNY 55/ton, effective at 0:00 on November 5, 2025. Iron ore prices remain volatile, providing strong support for pig iron production costs.

Supply and Demand: The pig iron market is characterized by both weak supply and demand. On the supply side, production is primarily based on prior orders, leaving available resources tight. On the demand side, downstream foundries are purchasing only out of necessity, with limited new orders. While low inventory levels provide some price support, insufficient downstream demand and declining iron and steel futures constrain further gains.

Outlook: Overall, the pig iron market is expected to maintain a stable and cautious trend tomorrow.