SMM daily comment on imported iron ore market (Aug 29)

SHANGHAI, Aug 29 (SMM) –

The most-traded DCE 2401 iron ore contract closed down 1.04% at 810.5 yuan/mt today. Iron ore traders were not enthusiastic about selling and most steel mills purchased in accordance with rigid demand. The overall transaction atmosphere was average today. The transaction prices of PB fines were 884-886 yuan/mt in Shandong, down 3 yuan/mt compared with yesterday, and were 884-886 yuan /mt in Hebei, down 7 yuan/mt compared with yesterday. Today’s market sentiment was pessimistic, and the confidence in the economy was relatively insufficient. From the fundamental point of view, according to SMM statistics, the output reduction of molten iron affected by blast furnace maintenance this week is estimated to be 863,000 mt, down 75,400 mt WoW, while output reduction will be 850,300 mt next week, down 12,700 mt WoW. High molten iron production of steel mills firmly supported iron ore demand. Subsequent attention should be paid on capital contributor sentiment and steel mill profit fluctuations, it is expected that iron ore prices will shock down in the short term.