MMi Daily Iron Ore Report for May 11th 2021

DCE iron ore futures continued to rise largely today, main contract has increased to around 5.4%; the spot quotation has increased by around 20yuan/mt over yesterday.

As of September 10, iron ore inventories across 35 ports tracked by SMM totalled 122.13 million mt, a decrease of 420,000 mt from the previous week, but up 13.95 million mt year-on-year. Daily average deliveries from the 35 ports decreased by 76,000 mt on a weekly basis to 2.6 million mt.

DCE iron ore futures continued to rise slightly today, the spot quotations tend to be stable in the morning. Some steel mills bought today on their demand, and traders sell actively.

DCE iron ore futures closed slightly higher than yesterday, although it hit the lowest 735 during trading period. PBF at Shandong port quoted as 1110-1120yuan/mt in the morning, down 40yuan/mt over yesterday’s deal price. Although DCE iron ore futures tend to be better since today’s performance, the spot price still continue to decrease.

DCE iron ore futures market continued strong tendency while the transaction prices still mixed with small ups and downs. Market players’ bullish sentiment increased given recent declining iron ore inventory at ports.

SMM data showed on Wednesday September 11. SMM estimates that 75 vessels carrying 10.85 million mt of iron ore arrived at major Chinese ports during September 1-7.

Six steelmakers in China’s Shandong province today agreed to cut production of around 400,000 mt steel products including rebar and wire rod.

Port stocks grew for the first time this week after 14 consecutive weeks of declines. As of July 19.

Vale announced that it is getting the permission to resume its 20 million mt wet processing operation at Brucutu within 72 hours.

A soaring DCE futures market helped lead the physical iron ore port stock quotes,boosting them by 20-40yuan/mt.