SMM daily comment on imported iron ore market (Aug 25)

SHANGHAI, Aug 28 (SMM) –

The most-traded DCE 2401 iron ore contract closed up 0.55% at 827 yuan/mt last Friday. Traders’ selling activity went along with market fluctuation, while steel mills purchased goods in a prudent mood. Iron ore market activity appeared moderate last Friday. The transaction prices of PB fines were 890-895 yuan/mt in Shandong, down 5 yuan/mt on the day, and were 885-894 yuan/mt /mt in Tangshan, down 1-10 yuan/mt on the day. The transaction prices of PB fines in Tangshan were 840 yuan/mt. As of August 25, iron ore inventories across 35 ports tracked by SMM totaled 117.11 million mt, down 230,000 mt WoW, but up 19.11 million mt YoY. Boosted by high pig iron output, the daily average imported ore shipments from the 35 ports added 9,000 mt on a weekly basis to 3.183 million mt this week, marking three-week increase in a row. This also unveiled red-hot demand for iron ore, supporting the rise in ore prices. Next week, demand for iron ore will remain high, but may diminish to a certain extent on the implementation of policy on crude steel output reduction. It is expected that prices of iron ore will appear volatile.