SMM daily comment on imported iron ore market (Aug 23)

SHANGHAI, Aug 24 (SMM) –

The most-traded DCE 2401 iron ore contract closed up 3.68% at 817 yuan/mt yesterday. With demand for delivery for end-August goods, selling appetites from iron ore traders appeared good, while steel mills purchased goods in a prudent mood. Iron ore market activity weakened yesterday. The transaction prices of PB fines in Shandong and Tangshan were 835 yuan/mt, flat with Tuesday. SMM surveyed that the operating rate of BF-based steel mills stood stable, but capacity utilization rate and molten iron output increased slightly. Rigid demand still gave a big boost to iron ore prices. There was a slack seasonal demand, and delivery for finished products was moderate. Therefore, a gain in prices of finished products came at a smaller magnitude than iron ore prices. Profits of steel mills eroded. Boosted by positive policy, iron ore prices will be inclined to hike, rather than a drop, and may keep swinging on a strong note on the near-term horizon.