SMM Daily Comment On Imported Iron Ore Market (Sep 8)

SHANGHAI, Sep 8(SMM) – The most-traded DCE I2401 iron ore contract moved downwards, closing down 2.07% at 827.5 yuan/mt today. Selling appetites from iron ore traders were muted, while steel mills prudently made inquiries. The overall trading sentiment appeared subdued. The transaction prices of PB fines were mostly 893-898 yuan/mt /mt in Shandong, down 4-9 yuan/mt on the day, and 900-910 yuan/mt in Tangshan, 10-20 yuan/mt lower than yesterday, and that of SS fines in Shandong was 766 yuan/mt. As of September 8, iron ore inventories across 35 ports tracked by SMM totaled 115.67 million mt, down 2.53 million mt WoW and 17.57 million mt YoY.

The daily average shipments from the 35 ports added 23,000 mt on a weekly basis to 3.046 million mt this week. With ample overseas shipments, the amount of arrivals at ports increased. In addition, rigid demand from BF-based steel mills and higher efficiency of port operation led to a dip in inventory at ports. Market sentiment may tend to be cautious amid fallout of negative news. Next week may mainly witness volatile iron ore prices.