SMM Daily Comment On Domestic Iron Ore Market (Sep 27)

SHANGHAI, Sep 28 (SMM) – In the Tangshan iron ore concentrate market, the leading steel company’s bidding price was reduced by 10 yuan/mt yesterday. The price of 66%-grade concentrates was 1,120-1,130 yuan/mt (tax-included, on a dry basis, delivery to factory). Pre-holiday shipments from manufacturers varied. Affected by the shortage of raw ore resources, the operating rate of local beneficiation plants continued to be sluggish and the inventory is small. Thus, beneficiation plants were unwilling to ship with lower-than-expectation prices. Due to uncertainties over the after-holiday market, local traders were cautious in receiving goods and were less receptive to high-priced ore. Taken together, most of the recent market transactions and shipments were based on order deliveries to steel mills. It is expected that the local iron ore market will continue to be flat in the near future.