Iron Ore Futures may Remain Strong in Short Term

SHANGHAI, Feb 23 (SMM) - Iron ore futures prices remained volatile yesterday, with the most-traded 2301 iron ore contract closing down 0.58% at 909.5 yuan/mt. Traders were active in delivery while steel mills mainly purchased as needed, hence the market trading atmosphere was fair. The transaction prices of PB fines in Shandong were mainly 912-915 yuan/mt, which was 1-3 yuan/mt lower than the previous day, while the PB fines in Tangshan were sold at 920-924 yuan/mt, down 1-7 yuan/mt.

According to SMM statistics, the operating rates of blast furnaces and the utilisation rate increased slightly. Due to the delay in the resumption of some steel mills, the increase in pig iron slowed down. The tight supply provided fundamental support for the prices. But the market players should pay attention to the impact of the news front on the iron ore prices. It is expected that the prices of iron ore will remain strong in the short term.