SMM Daily Comment On Imported Iron Ore Market (Sep 26)

SHANGHAI, Sep 27 (SMM) – The most-traded DCE 2401 iron ore contract closed up 1.64% at 841 yuan/mt yesterday. Steel mills tended to seek low-price supply, and the overall transaction atmosphere was acceptable. Transaction prices of PB fines were 929-935 yuan/mt in Shandong, down 0-6 yuan/mt from the previous day, and 955 yuan/mt in Tangshan, up 5 yuan/mt. Sluggish terminal demand resulted in limited steel shipments. Losses of steel mills worsened, and concerns about negative feedback led to pessimistic market sentiment. Spot price remained strong propelled by tight tradable resources in ports and remaining pre-holiday demand. In the short term, since demand market suppressed supply, ore prices are not possible to plunge and may maintain weak fluctuation.