SMM daily comment on imported iron ore market (Aug 24)

SHANGHAI, Aug 25 (SMM) –

The most-traded DCE 2401 iron ore contract closed down 0.86% at 811 yuan/mt yesterday. The enthusiasm of traders to ship weakened. Steel mills took a wait-and-see stance and made just small purchases. The transaction price of PB fines in Shandong was 890-900 yuan/mt, down 5-15 yuan/mt compared with that of Wednesday, while that in Tangshan was 895 yuan/mt, 5 yuan/ton lower than Wednesday’s price. Affected by rumors of central government’s control on infrastructure investment, ferrous metal prices declined collectively. A steel factory in Yizhou, Shanxi issued a letter, promising to cap its crude steel output at the same level as last yearm further weakening market confidence and causing iron ore prices to drop significantly. However, high molten iron output and low steel mill inventory still supported prices, so it is expected that short-term ore prices may fluctuate at a high level.