SMM daily comment on domestic iron ore market (Aug 8)

SHANGHAI, Aug 9 (SMM) –

Iron ore concentrate market softened in Tangshan in early week. Recently, tracking swings of falling imported ore concentrate prices, domestic iron ore concentrate prices started eroding. According to SMM, some steel mills with ample domestic iron ore concentrates stopped purchasing the concentrates, and there will be no need for them to refill stocks in the short term. Moreover, recent sharp drop in imported ore prices and domestic ore supply shortfalls kept iron ore prices firm, thereby lowering the price/performance ratio of ore concentrates compared with before, which also explained for the muted demand. Recent iron ore market weakened, as there was no rush to purchase goods. In other respects, the fourth round of coke price uptick led to steel price slip, narrowing profits of steel mills, bringing with it the mills’ strong willingness to lower iron ore concentrate prices. On the whole, in the context of market rumors that Tangshan-based steel mills curbed production, imported ore market will weaken, and domestic iron ore concentrate prices may creep down in Tangshan.