SHANGHAI, Aug 15 (SMM) –
The leading mines in Shandong lowered iron ore prices by 18 yuan/mt, and now the 64-grade alkali concentrates in the middle of Shandong was 853 yuan/mt (D/A, ex-works, tax-excluded, on a dry basis). As sustained shutdown of the local leading mines further tightened iron ore spot supply, and there was no pressure of inventory which may linger. However, given coke price hikes, profits of steel mills shrank. In addition, steel mills adjusted the ratio to use imported ore who had a cost-effective advantage to maintain production. On the other hand, Zaozhuang kept offers firm. Traders with high-priced ore stocks were reluctant to sell ores at low prices, and largely met early orders. Under such circumstance, few deals were concluded. Iron ore market in Shandong will swing within a narrow range this week amid fallout of imported ores.