Imported Iron Ore Prices Rose Last Week, And May Hover At Highs This Week

Published: Jul 04, 2023 11:21 (GMT+8)
Source: SMM
SHANGHAI, Jul 4 (SMM) –  The recent high temperature and frequent rainfalls have caused a significant decline in demand for rebar.

SHANGHAI, Jul 4 (SMM) –  The recent high temperature and frequent rainfalls have caused a significant decline in demand for rebar. As a result, rebar inventories have begun to accumulate. However, rebar inventory is still low year-on-year, thus inventory pressure on steel mills is small. Driven by decent profits, pig iron production continued to increase. In addition, the market had strong expectations for stimulus policies, boosting ferrous metals prices. Thanks to limited supply increase and growing demand, iron ore futures prices led gains among ferrous metals. But spot iron ore prices failed to keep up. The spot prices of PB fines at ports in Shandong gained just 10 yuan/mt from the previous week.

Looking forward into this week, some steel mills have plans for blast furnace maintenance in July, thus pig iron production may plateau. Iron ore shipments from overseas mines increased significantly in late June, with further room to grow this week. Considering that an important government meeting will be held in July, which may introduce real estate and economic stimulus policies. This, coupled with low iron ore inventory, will provide strong support for iron ore prices. However, the production enthusiasm of steel mills may cool due to the off-season for terminal demand and profit erosion by rising ore prices. Imported iron ore prices are likely to move at highs this week.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
[SMM Analysis] Indonesia plans to establish a BLU in the energy sector, with coal procurement and DMO mechanisms facing further clarification
16 hours ago
[SMM Analysis] Indonesia plans to establish a BLU in the energy sector, with coal procurement and DMO mechanisms facing further clarification
Read More
[SMM Analysis] Indonesia plans to establish a BLU in the energy sector, with coal procurement and DMO mechanisms facing further clarification
[SMM Analysis] Indonesia plans to establish a BLU in the energy sector, with coal procurement and DMO mechanisms facing further clarification
The Indonesian government plans to establish a public service agency in the energy sector (BLU Energi) through a presidential regulation, responsible for the procurement and supply of thermal coal and natural gas. The proposed procurement function has raised market concerns about the relationship between BLU Energi and the existing domestic market obligation (DMO) mechanism, coal pricing, and the allocation of domestic coal supply in China.
16 hours ago
[SMM Analysis] Indonesia Drafts Energy Sector BLU, Raising Questions Over Coal Procurement and DMO Framework
16 hours ago
[SMM Analysis] Indonesia Drafts Energy Sector BLU, Raising Questions Over Coal Procurement and DMO Framework
Read More
[SMM Analysis] Indonesia Drafts Energy Sector BLU, Raising Questions Over Coal Procurement and DMO Framework
[SMM Analysis] Indonesia Drafts Energy Sector BLU, Raising Questions Over Coal Procurement and DMO Framework
Indonesia is drafting a Presidential Regulation to establish an Energy Sector BLU to procure and distribute coal and natural gas for power generation. The proposed procurement role raises questions over how BLU Energi would interact with the existing DMO framework, coal pricing and domestic supply allocations.
16 hours ago
[SMM Analysis] India’s Proposed EU Steel Quota Mirrors Export Mix but Covers Only Half of Historical Trade
19 hours ago
[SMM Analysis] India’s Proposed EU Steel Quota Mirrors Export Mix but Covers Only Half of Historical Trade
Read More
[SMM Analysis] India’s Proposed EU Steel Quota Mirrors Export Mix but Covers Only Half of Historical Trade
[SMM Analysis] India’s Proposed EU Steel Quota Mirrors Export Mix but Covers Only Half of Historical Trade
The proposed distribution under the India-Europe Free Trade Agreement (FTA) broadly reflects India’s historical export mix to the EU, but its fixed volume covers only 53.6% of average mapped trade during 2022–2024.
19 hours ago