SMM Daily Comment On Imported Iron Ore Market (Sep 7)

SHANGHAI, Sep 7(SMM) – The most-traded DCE 2401 iron ore contract closed down 1.88 % at 836.5 yuan/mt today. Iron ore traders were highly motivated to ship today, while steel mills mainly purchased iron ore based on rigid demand, and the overall transaction atmosphere was active. The transaction prices of PB fines were 900 yuan/mt in Shandong, down 16 yuan/mt compared with yesterday, and 920 yuan/mt in Hebei, flat with yesterday. The transaction prices of super special fines in Shandong were 760 yuan/mt, 15 yuan/mt lower than that yesterday. Today’s news brings huge fluctuations. Rumors said that relevant state departments met with key futures companies to analyze and judge the iron ore market and price trends, therefore causing market panic, sending iron ore prices down. However, no offical information has been announced so far, so the pessimism may be alleviated in the short term. Currently, steel market is gradually entering the peak season, and the demand for finished steel improved marginally from the previous month, but the year-on-year improvement was average. We need to pay attention to the profits of steel mills and the demand for finished steel, and the short-term iron ore price may fluctuate upward.