SMM daily comment on domestic iron ore market (Aug 10)

SHANGHAI, Aug 11 (SMM) –

The most-traded DCE 2401 iron ore contract weakened yesterday, closing down 0.49% at 714.5 yuan/mt yesterday. Some traders sold iron ores along with the market changes, while demand from steel mills remained sluggish. Iron ore market activity appeared subdued yesterday. The transaction prices of PB fines in Shandong were mostly 830-837 yuan/mt /mt, down 5 yuan/mt on the day. The transaction prices of PB fines in Tangshan were 840 yuan/mt, which was 2 yuan/mt lower than the previous trading day. Yesterday's apparent demand from construction materials was still weak. However, with recent restart, supply of steel mills increased, and inventory increased further. In addition, there were policies on crude steel output reduction. Therefore, continuous efforts of steel mills to keep inventory low appeared. Demand for iron ore weakened, and spot transactions were relatively sluggish. The short-term iron ore market may still swing on a subdued note on the near-term horizon.