SMM daily comment on domestic iron ore market (Aug 9)

SHANGHAI, Aug 10 (SMM) –

The most-traded DCE 2401 iron ore contract closed up 0.07% at 723 yuan/mt yesterday. Some traders kept offers firm, while steel mills purchased goods on a need-to basis. Iron ore market activity appeared moderate yesterday. The transaction prices of PB fines in Shandong were mostly 835 yuan/mt /mt, down 10-15 yuan/mt on the day. The transaction prices of PB fines in Tangshan were 837-842 yuan/mt, which was 2-7 yuan/mt lower than the previous trading day. In July, the CPI turned from a decrease to an increase from the previous month. The domestic iron ore supply was generally sufficient, while demand of some industries improved. Market sentiment improved slightly. In addition, operating rate of aluminum stood high. Therefore, demand for iron ore may increase. However, iron ore erosions were felt from impact of negative news on real estate in the past two trading days. Short-term iron ore prices will continue to fluctuate.