SMM daily comment on imported iron ore market (Aug 30)

SHANGHAI, Aug 30 (SMM) – The most-traded DCE 2401 iron ore contract closed up 1.97% at 829 yuan/mt today. Iron ore traders were not enthusiastic about selling and most steel mills purchased in accordance with rigid demand. The overall transaction atmosphere was average today. The transaction prices of PB fines were 890-895 yuan/mt in Shandong, up 6-11 yuan/mt compared with yesterday, and 890 yuan /mt in Hebei, up 8 yuan/mt compared with yesterday. Besides, the transaction prices of super special fines were around 732 yuan/mt in Shandong. Today, market regained its confidence in favorable policies and held certain expectations for the China manufacturing PMI data to be released tomorrow. However, extreme weather in some areas may affect end-user demand. The fundamentals of iron ore continued the pattern of simultaneous strong supply and demand, and the price trend is heavily influenced by news and sentiment. It is expected that iron ore prices will fluctuate rangebound in the short term.