Last Friday, the spot verification transaction prices in the three northern regions all pointed to the range of 4750-4800 yuan/ton, with the market’s downward momentum accelerating. Market participants mostly indicated that only when prices drop “to the right level” or when the market starts to release information about production cuts, will the trading psychology of both buyers and sellers calm down slightly, and market-making activities will decrease. As for the “right level” of prices, traders generally believe it is related to the dynamic costs of high- and medium-level capacities in regions like Shanxi and Henan. Considering factors such as ore procurement prices, the proportion of loose ore procurement, and fluctuations in caustic soda prices, it is expected that the costs for different enterprises in Shanxi, Henan, and other regions will generally range between 3500-4200 yuan/ton in the recent period.
