SHANGHAI, Jan 20 (SMM) - Chinese authorities cautioned iron ore trading companies and futures companies against fabricating price hike information and price inflating in a bid to rein in the iron ore prices. DCE iron ore prices thus stabllise. The gross domestic product (GDP) in 2022 rose 3%, missing market expectations. But this has had little impact on the market.
On fundamentals, arriving shipments were stable this week. On the demand front, some steel mills will defer their production resumption to until after CNY holidays. The average daily pig iron output increased slightly. The impact from fundamentals was insignificant. Both trading volumes and positions on DCE I2305 contract decreased this week from a week earlier.
Transactions have weakened despite continuing production of some enterprises during CNY holidays. The market is expecting restocking of spot cargoes post-holiday. DCE iron ore prices are expected to move rangebound in the short term.