SMM Daily Comment On Imported Iron Ore Market

SHANGHAI, Jun 29 (SMM) – The most-traded DCE iron ore contract rose at a slower pace today, closing up 0.85%. Traders in the spot market rushed to sell. Steel mills purchased on demand, and their willingness to purchase has improved. The transaction prices of PB fines in Shandong were mostly 875-880 yuan/mt, which was 0-5 yuan/mt higher than yesterday. The transaction prices of PB fines in Tangshan were mainly 895-900 yuan/mt, up 0-5 yuan/mt from yesterday. The transaction prices of super special fines in Tangshan rose 8 yuan/mt to 740 yuan/mt. Today's apparent demand for steel products dropped significantly, but the overall inventory of steel products, especially rebar and HRC, is still relatively low on a year-on-year basis, thus the market is relatively optimistic about terminal demand. Market is pinning hopes on possible stimulus policies from major government meeting to be held in July. Expected increase in iron ore supply and little growth in pig iron production will put downward pressure on iron ore prices.