SMM Daily Comment And Forecast For Domestic Iron Ore Market (May 9)

SHANGHAI, May 9 (SMM) – Boosted by rising imported ore prices and concentrate prices in Tangshan, concentrate prices in western Liaoning rose slightly today, with prices of Fe66% concentrates up 10 yuan/mt to 660-670 yuan/mt (wet basis, excluding tax, ex-factory). Due to tight supply in Tangshan, some traders sourced concentrates from western Liaoning, but local supply was also tight, allowing sellers to hike offers. Higher prices discouraged some traders from buying. Steel price rebound improved steel mills’ profit margins and they have no maintenance plans for now, thus iron ore demand was strong. However, steel mills held sufficient inventory of domestic ore and thus showed low interest in purchasing.