SMM Daily Comment On Imported Iron Ore Market (Sep 14)

SHANGHAI, Sep 14(SMM) – The most-traded DCE 2401 iron ore contract closed up 0.82% at 863.5 yuan/mt today. Traders’ enthusiasm for shipments was acceptable, but steel mills replenished their inventories based on rigid demand, so the overall market transaction atmosphere today was average. The transaction price of PB fines was 930 yuan/mt in Shandong, up 7 yuan/mt compared with the previous trading day, and price in Tangshan was 940 yuan/mt, up 15 yuan/mt. Demand for rebar fell today, and was lower than market expectations, thus iron ore futures fell following the decline in finished steel. The news that PBOC will cut interest rates on Friday bolstered market sentiment and iron ore prices rebounded n later in the day, which also lifted port spot prices. However, steel mills were not willing to purchase the high-priced products. In the short term, iron ore prices still have an upward trend supported by high pig iron output and steel mills’ restocking before the National holiday.