SMM Daily Comment On Imported Iron Ore Market (Sep 6)

SHANGHAI, Sep 6(SMM) – Rebar futures fluctuated sideways and closed at 3,817 yuan/mt, up 0.03% from the previous trading day. Spot market prices moved sideways throughout the day, while some markets fell slightly by 10 yuan/mt. According to SMM research, the operating rate of electric furnaces this week was 38.71%, a decrease of 2 percentage points MoM. Rebar output in electric furnace steel mills continued to decline but blast furnace steel mills ended maintenance, so the overall supply was loose. On the demand side, as rebar prices fluctuated and rose, the trading atmosphere during the day was deserted, and terminal demand performed poorly. Affected by the typhoon, the shipments in Fujian stagnated, while traders basically purchased on demand in other areas, depressing the intraday transaction volume.

In the follow-up, according to SMM research, there are signs of marginal improvement in terminal demand and favorable policies are frequently issued, so the supply-demand imbalance will be further eased. However, it needs time for policies to wield a positive impact on steel demand. Currently, market is still dominated by wait-and-see, and steel prices will be under downward pressure in the near future.