Iron Ore Prices Strongly Supported by Rising Demand

SHANGHAI, Mar 3 (SMM) - Yesterday, iron ore futures still fluctuated with some ups, and the most-traded I2305 contract closed at 912.5 yuan/mt, an increase of 1.56%. Traders shipped actively while steel mills mainly purchased as needed. The overall transactions were acceptable. The transaction prices of PB fines in Shandong were mainly 913-917 yuan/mt, which was 2-5 yuan/mt higher than the previous day, while the PB fines in Tangshan stabilsied at 929-930 yuan/mt.

The inventory of the top ten ports tracked by SMM declined slightly as demand from steel mills increased in light of rising pig iron output. Only lump ore inventory increased slightly due to the declining demand after environmental protection production restriction in north China ended. The inventory of other varieties all declined slightly. The inventory of finished steels declined further amid the rising apparent demand, which supported the increase of iron ore prices.