Morning Comment: Iron Ore Futures Likely to Increase amid Favourable Conditions

Published: Feb 27, 2023 09:32

Source: SMM

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Iron ore futures prices remained volatile last Friday, with the most-traded 2305 iron ore contract closing down 0.22% at 909.5 yuan/mt.

SHANGHAI， Feb 27 (SMM) - Iron ore futures prices remained volatile last Friday, with the most-traded 2305 iron ore contract closing down 0.22% at 909.5 yuan/mt. Traders were less active in delivery while steel mills were wait-and-see, hence the market trading atmosphere was cold. The transaction prices of PB fines in Tangshan stood at 910-916 yuan, and that of PB fines in Tangshan were 925 yuan/mt, flat from last Thursday.

As the maintenance at Australian port ended and the effects of BHP railway accident faded, the shipments have increased. In addition, the rising iron ore prices encouraged shipments from other countries, which may lead to a slight increase in global shipment. In terms of demand, there are 4 blast furnaces in north-west China, and 1 blast furnace in north China planned to resume the production. Due to the recent high iron ore prices, steel mills mainly consumed in-plant inventory and purchase demand may increase this week. In the short term, the fundamentals will support nickel prices. Amid the recovering demand for finished products and the bullish outlook during the two sessions, the prices of iron ore will increase this week.

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