SMM daily comment on domestic iron ore market (Aug 14)

SHANGHAI, Aug 15 (SMM) –

The most-traded DCE 2401 iron ore contract closed down 0.41% at 725 yuan/mt yesterday.

Selling appetites from iron ore traders were moderate, while steel mills purchased ores in a prudent mood. The overall market trading was lukewarm. The transaction prices of PB fines in Shandong were mostly 828 yuan/mt /mt, down 13 yuan/mt than last Friday. The transaction prices of PB fines in Tangshan were 840 yuan/mt. SMM statistics showed that the global iron ore shipments totaled 29.75 million mt last week, a drop of 3.8% week-on-week. Shipments from Australia inched lower, while those from Brazil increased. With waning impact of the typhoon, efficiency of port operations increased, thereby the number of arrivals at Chinese major ports mounted sharply. On the demand side, given uncertain implementation of crude steel production restrictions and good profits, steel mills had greater incentive to produce. Currently, good supply-demand fundamentals gave a boost to iron ore prices. However, macro data to be released this week may have an impact on market sentiment. Iron ore prices will mainly range bound in the short term.