SMM Daily Comment On Imported Iron Ore Market (Sep 22)

SHANGHAI, Sep 25 (SMM) – The most-traded DCE 2401 iron ore contract closed up 0.87% at 871.5 yuan/mt today. Although iron ore traders’ shipment willingness and steel mills' inquiry enthusiasm were acceptable, the overall transaction atmosphere was flat. The transaction price of PB fines was 940 yuan/mt in Shandong and 965 yuan/mt in Hebei. Macro news was mixed. Market concerns about production restrictions during the heating season affected demand for raw materials. However, as domestic carbon emissions work is progressing in an orderly manner and steel plant equipment is upgraded, carbon-reduction already yielded initial results. Overseas mining accidents heightened the market’s bullish sentiment but wielded little effect on ore prices. In the follow-up, pre-holiday replenishment may gradually end. Imported ore prices are expected to fluctuate narrowly, and attention should be paid to pig iron output.