[SMM Express] has plummeted by more than 8%! Crude steel production reduction is expected to gradually realize the increase in iron ore price pressure.

Today, iron ore futures continued to weaken, as of the day's close, the main iron ore contract was 1027 yuan / ton, down 8.14%, a low since the end of May, approaching the thousand yuan mark.

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From a fundamental point of view, yesterday even iron weak consolidation, the port spot market early quotation than Wednesday basically maintained stability. Steel mills bargain inquiry enthusiasm is OK, some merchants in order to conclude the transaction, accept low price sale. Yesterday, PB powder in Shandong traded 1320-1350 yuan / ton, down 15-58 yuan / ton from Wednesday. Due to the requirements of the power restriction policy in South China, a number of electric furnace steel mills have stopped production one after another, and the recovery time is uncertain.

With the recent market expectations of crude steel production reduction gradually realized, including scrap steel, iron ore and other raw material prices are expected to continue to be under pressure. In addition, with the continuous accumulation of imported ore port inventory, the price of mainstream middle grade powder represented by PB powder decreased significantly.

According to the spot price of SMM port, the price difference of high and middle grade minerals has increased by 102 yuan / ton to 426 yuan / ton compared with the same period last month, while the price difference between medium and low grade has narrowed 73 yuan / ton to 371yuan / ton compared with the same period last month. With the recent easing of structural contradictions in the mainstream middle-grade fine ore, and the continuous progress of production reduction, the pressure on iron ore prices has increased.