SMM daily comment on imported iron ore market (Aug 17)

SHANGHAI, Aug 18 (SMM) –

The most-traded DCE 2401 iron ore contract closed up 4.34% at 768.5 yuan/mt yesterday. Selling appetites from iron ore traders picked up, while steel mills purchased ores on a need-to basis. The overall market trading was moderate. The transaction prices of PB fines in Shandong were mostly 860 yuan/mt /mt, up 10 yuan/mt on the day. The transaction prices of PB fines in Tangshan were 855 yuan/mt. From the current fundamentals, an sharp increase in the amount of iron ores arrived at Chinese ports, while high pig iron output bolstered demand for iron ores. Prices of iron ore were inclined to hike rather than a drop. However, considering policy on crude steel output limit, prudent demand from steel mills for raw materials was reported. Profits of steel mills and the implementation of the policy will need to be watched.