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

SHANGHAI, Sep 7(SMM) – Tangshan’s iron ore concentrate market remained stable, while iron ore futures fluctuated widely, and steel transactions were sluggish. The production reduction of sintering machines in steel mills didn’t have little impact on production. The blast furnace operating rate of steel mills was still at a high level. As steel prices continued to fall, steel mills’ profits declined. This also led to a strong willingness of steel mills to lower raw material costs. Besides, a few steel mills adjusted the ratio of imported and domestic iron ore in production. Considering actual inventory and daily consumption, steel mills purchased iron ore concentrate on rigid demand. Overall, with low supply and high demand, local iron ore prices tend to rise, but losses from steel mills will inhibit the growth room.