SMM Daily Comment On Imported Iron Ore Market (Sep 13)

SHANGHAI, Sep 13(SMM) – The most-traded DCE 2401 iron ore contract closed up 0.47% at 860.5 yuan/mt today. Steel mills replenished their inventories based on rigid demand, and the overall market transaction atmosphere today was average. The transaction price of PB fines was 923 yuan/mt in Shandong, down 2 yuan/mt compared with the previous trading day, and price in Tangshan was 925 yuan/mt, down 5 yuan/mt. According to SMM survey, there were 2 new blast furnaces under maintenance and one resuming production this week, resulting in a slight decrease in pig iron production. Considering that iron ore inventories at steel mills were insufficient and the Mid-Autumn Festival and National Day holiday approaches, steel mills urgently tend to replenish inventories, leading to high demand for iron ore. However, terminal markets’ demand was less than peak-season expectations, and steel mills’ profits continued to shrink, which may drag down ferrous metal market trends. Iron ore prices are estimated to fluctuate in the short term.