SMM daily comment on domestic iron ore market (Aug 28)

SHANGHAI, Aug 29 (SMM) –

Iron ore prices in Shandong shot up by 85 yuan/mt. And now the 64-grade alkali concentrates in the middle of Shandong was 954 yuan/mt (D/A, tax-excluded, on a dry basis). Local ore tightness and more inquiries from buyers outside Shandong stimulated leading mines to raised up ore prices, thereby leaving steel mills with less ore supply.

Therefore, confronted with high financial pressure and spot supply shortfalls, the steel mills have to consume ores as much as they brought. Under such circumstance, traders largely aimed to meet early orders. Iron ore market activity appeared lukewarm. Given a sharp increase in ore prices and rigid demand from steel mills, iron ore market in Shandong may swing on a bullish footing this week.