SMM daily comment on imported iron ore market (Aug 7)

SHANGHAI, Aug 8 (SMM) –

The most-traded DCE 2401 iron ore contract closed down 1.57% at 719.5 yuan/mt yesterday. Selling appetites from iron ore traders were moderate, while steel mills purchased for hand-to-mouth use. The overall market trading was modest. The transaction prices of PB fines in Shandong were mostly 842 yuan/mt /mt, down 8 yuan/mt than last Friday. The transaction prices of PB fines in Tangshan were 840-845 yuan/mt, which was 5-10 yuan/mt lower than the previous trading day. SMM shipping data said that SMM global iron ore shipments totaled 30.91 million mt, down 6.2% from the previous week. Shipments from Australia and Brazil both shrank. A total of 20.9611 million mt of iron ore arrived at Chinese ports last week, down 14.12% week-on-week. And typhoon was responsible for the decline. However, the end of maintenance of some steel mills led to a slight increase in demand, while lower-than-expected supply was felt from impact of news of crude steel production restrictions. Short-term iron ore market may swing on a soft territory.