SMM daily comment on domestic iron ore market (Aug 16)

SHANGHAI, Aug 17 (SMM) –

The most-traded DCE 2401 iron ore contract swung at high, and closed up 0.82% at 738.5 yuan/mt yesterday. Selling appetites from iron ore traders picked up, while steel mills purchased ores on a need-to basis. The overall market trading was passable. Yesterday, there was another news about steel mills' crude steel output limit, unveiling details about the specific production reduction and production reduction time of steel mills, but according to SMM research, no clear notice was received yet. Acceptable profits of steel mills and high pig iron output boosted iron ore prices. In the case of uncertain news about the crude steel production limit, market sentiment was greatly affected by the macro news. Iron ore market may stay range-bound on the near-term horizon.