SMM Daily Imported Iron Ore Market Comment and Forecast (May 9)

SHANGHAI, May 9 (SMM) - The most-traded DCE 2309 iron ore contract rose today, closing up 1.28% at 714 yuan/mt. The quotations of traders were still relatively firm, while the wait-and-see sentiment of steel mills has increased. The overall market transaction atmosphere was modest. The transaction prices of PB fines in Shandong were mainly 790-798 yuan/mt, up 3-5 yuan/mt from yesterday, while those in Tangshan were 823-825 yuan/mt, up 5-8 yuan/mt. Steel prices have rebounded sharply recently, thus the market mentality has improved. It was heard that one steel mill in Shanxi will restart its blast furnaces. Iron ore imports fell sharply by 9.8% in April. Port arrivals may see limited growth in May. Disruptions on overseas shipments will ease and overseas mines will probably ramp up shipments to achieve quarterly targets, which are expected to boost China’s iron ore imports in May. The iron ore supply will remain ample. It is expected that iron ore prices will fall in the medium and long term.