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[market changes] Iron ore fell by more than 4% in intraday trading and gave up this month's increase for 2 days in a row.
Jul 22,2021 10:13CST
Translation
Source:SMM
[market changes: iron ore fell more than 4% in a row for 2 days to give up this month's gains] the main 2109 contract decline in iron ore futures once widened to more than 4%. In the past two trading days, the main force of iron ore has fallen below the 30-day and 60-day moving average one after another. almost give up all the gains this month. SMM predicts that iron ore is expected to continue to operate under pressure as the reduced production continues to ferment.
The content below was translated by Tencent automatically for reference.

SMM7 March 22: iron ore futures main 2109 contract decline once expanded to more than 4%, nearly 2 trading days, iron ore main force fell below the 30-day, 60-day moving average, nearly giving up all the gains since this month. As of press time, the main iron ore reported 1152.5 yuan / ton, down 4.12%.

"check the metal futures market.

The National Development and Reform Commission recently held a national price work conference, requiring local price departments to focus on strengthening price monitoring, early warning and expectation management, strengthening commodity price regulation and control, and ensuring the supply and stability of important commodities for people's livelihood. The follow-up trend of iron ore will continue to face pressure at the policy level.

At the same time, recently, Jiangsu, Anhui, Shandong, Hunan and Shanxi and other places to reduce crude steel production tasks have been introduced, superimposed Hebei, Guangxi and other steel mills have reported blast furnace maintenance, production reduction news, the market bearish sentiment has risen.

In addition, domestic port inventory has accumulated for three consecutive periods, and the weekly inventory of 35 ports tracked by SMM increased by 710000 tons compared with the previous period. With the gradual expansion of the production reduction scope of domestic steel enterprises, there is still room for iron ore demand to be compressed in the later stage.

According to the calculation of SMM215 Meimei Gold Mine, the rebar profit of domestic long-process steel mill has rebounded to about 309 yuan / ton, and the profit of hot-rolled coil is even as high as 735 yuan / ton; however, it is understood that the increase in steel mill profit is mainly due to the recent rise in lumber prices, but the actual turnover in the finished product market is still less than expected. SMM predicts that iron ore is expected to continue to operate under pressure as the reduced production continues to ferment.

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