SHANGHAI, Jun 30 (SMM) – Iron ore futures contract has been rebounding for five days in a row with the support of terminal steel demand and improving market sentiment rebound. The contract gained 2.29% yesterday (June 29) as of closing and stood at 803.5 yuan/mt.
Recently, standing nucleic acid testing has been revoked in a number of places. And it is worth noting that today, in order to support efficient coordination of pandemic prevention and control and economic and social development, and to facilitate the travel of the majority of users, the "asterisk" markings on travel journey cards (行程卡, xingchengka) is removed with immediate effect.
The loosening pandemic control has boosted the market to some extent.
In addition, the market sentiment further stabilises with the marginal improvement of supply and demand in the steel sector with falling steel supply after steel mills carry out maintenance as well as rising terminal transactions.
The spot market, however, was relatively quiet with traders and steel mills both remaining muted. PB fines in Shandong were mostly traded at 867-875 yuan/mt, and super special fines in Shandong were sold at 725 yuan/mt. PB fines and SSF in Tangshan were traded at 875 yuan/mt and 738 yuan/mt respectively.
To sum up, market confidence has been boosted by relaxing pandemic control measures as well as other stimulus packages. Coupled with falling finished products inventory carried by steel mills, the production enthusiasm has been restored, and the demand for iron ore will stabilise. However, considering that steel mills still suffer losses, pig iron production is likely to drop further in the near term. As such, iron ore prices will remain rangebound.
