SHANGHAI, May 3 (SMM) – Spot iron ore trading in China was less active on Thursday May 3 after steel mills increased procurement the previous day, SMM learned.

Offers for iron ore were heard 5-10 yuan/mt higher across several markets during the day, but traded prices mostly rose 2-5 yuan/mt.

A steel plant in east China reported profits of 400-500 yuan/mt. Currently, it is purchasing as needed, with the majority of demand from high-grade iron ore.

Steelmakers in north China also mostly purchased on demand as their in-plant stocks of iron ore were expected to suffice for seven to 10 days. 

Spot prices of iron ore products are expected to stay flat in the short term due to sufficient supply, except for the Australian Newman fine.

SMM’s MMi Iron Ore Port Index stood at 481 yuan/wmt fot Qingdao on Thursday for 62% Fe fines, up 7 yuan/wmt from Wednesday May 2.  

The index for 58% Fe fines rose 10 yuan/wmt to 330 yuan/wmt while the index for 65% Fe fines gained 6 yuan/wmt to 575 yuan/wmt.

SMM and its new price index business Metals Market Index (MMi) launched the iron ore port indices on May 2 as port prices continued to gain importance in pricing iron ore.  

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