Domestic Iron Ore Prices in October may Usher in a Fourth-Quarter High amid the Growing Demand

SHANGHAI, Oct 12 (SMM) - In September, the average price index of domestic ores added 17 yuan/mt. The demand for finished products increased significantly, pushing up the production of blast furnaces in steel mills. Accordingly, steel mills' demand for iron ore continued to expand. Iron ore prices in September grew because the supply of domestic ore was reduced by the water inrush accident in mines in Qianxi, the landslide accident in Dai County in early September and the advanced restrictions on explosives in some regions. In October, steel mills in some regions receive a production restriction on sintering machines, which may push up the use of pellets and is beneficial to domestic concentrates. Steel mills will resume their production when the 20th National Congress is over, and the demand for iron ore will rise by then, thus the domestic ore prices in October may usher in a fourth-quarter high.