SMM Daily Comment On Imported Iron Ore Market (Sep 25)

SHANGHAI, Sep 26 (SMM) – The most-traded DCE 2401 iron ore contract closed up 2.03% at 844.5 yuan/mt today. Traders held firm quotations and are in no rush to ship. Meanwhile, the wait-and-see sentiment of steel mills intensified, so the overall transaction atmosphere of the market was average. The transaction prices of PB fines were 930-935 yuan/mt in Shandong, a decrease of 10-15 yuan/mt compared with that of last Friday, and 945-950 yuan/mt in Hebei, down 7-15 yuan/mt. SMM shipping data showed that global shipments and arrivals dropped sharply and supply growth fell short of expectations. Pre-holiday replenishment was close to an end, while iron ore demand peaked and fell back. Poor performance during the peak season struck market confidence. High pig iron output and relatively low port inventory formed support for iron ore fundamentals. Import iron ore markets are expected to remain volatile in the short term.