SHANGHAI, May 24 (SMM) – On Wednesday, DCE 1709 iron ore, the most actively-traded contract, finished at 479 yuan per tonne, off 3.13 per cent, registering bigger losses than iron ore futures.
The steep decline triggered market pessimism. Will the declines be continuing?
China Iron Ore to Get Support from Stable Demand and High Profits at Mills, SMM Foresees
The Platts Fe 62% iron ore index has been fluctuating narrowly between $60-63 per tonne since May 5, and a nearly-doubled increase in profits at steel mills did not translate into big gains in the iron ore market against the background of supply surplus. Meanwhile, no significant stock-piling was made by steel mills.
But, iron ore inventories at most of mills are lows compared with levels seen in past years, and with the nearing of Dragon Boat Festival from May 28-30, steel mills are estimated to enter the market.
Hence, SMM expects the Platts Fe 62% iron ore index to keep trading at around $ 60 per tonne for the foreseeable future.
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