SMM Daily Comment On Imported Iron Ore Market (Sep 5)

SHANGHAI, Sep 5 (SMM) – The most-traded DCE 2401 iron ore contract closed down 0.59% at 846.5 yuan/mt today. Iron ore traders were highly motivated to ship today, steel mills mainly purchased iron ore based on rigid demand, and the overall transaction atmosphere was active. The transaction prices of PB fines were 908-911 yuan/mt in Shandong, down 4-6 yuan/mt compared with yesterday, and 907 yuan/mt in Hebei, down 5-12 yuan/mt. In terms of news, it was reported this morning that China will investigate the false transaction in commodity market, sending iron ore prices down in the afternooon. In the fundamentals, according to SMM statistics, the reduction in molten iron production caused by blast furnace maintenance this week will be 779,100 mt, a decrease of 96,700 mt Wow, and that will further decrease next week on a weekly basis. Therefore, the blast furnace molten iron output is expected to increase this week. The subsequent upside room of iron ore price will depend on the profits of steel mills. Buyers need to pay attention to the demand for finished steel in the future. Imported iron ore prices are estimated to fluctuate upward in the short term.