Bullish Macro Sentiment And Healthy Fundamentals Shored Up Imported Iron Ore Prices In June

Published: Jul 6, 2023 17:29

Source: SMM

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SHANGHAI, Jul 6 (SMM) – In early June, China’s manufacturing PMI was better than expected, and worker strike in Brazil, along with the suspension of railway lines in South Africa, boosted market sentiment. Subsequently, China's five major banks announced the reduction of deposit rates, also cheering market. Strong expectations for stimulus policies boosted ferrous metals prices. From a fundamentals point of view, iron ore shipments by overseas mines increased significantly in late June, driven by the rush to achieve semi-annual targets. Improving profits boosted steel mills’ enthusiasm for production. This, combined with low inventory on hand, drove the rigid demand for iron ore. On the whole, the prices of both spot iron ore and futures contract fluctuated upward in June. The spot prices of mainstream iron ore fines at major ports in Shandong and Hebei rose by more than 100 yuan/mt. At the beginning of June, the spot prices of iron ore fell to a nearly five-month low, with the prices of PB fines at Qingdao Port at 767 yuan/mt. Yet, iron ore prices rebounded to 876 yuan/mt afterwards, driven by improved market sentiment.

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