Iron Ore Prices are Expected to Remain Volatile

SHANGHAI, Feb 15 (SMM) - Iron ore futures prices rose yesterday, with the most-traded 2301 iron ore contract closing down 0.41% at 856.5 yuan/mt. Traders were active in delivery while steel mills mainly purchased as needed, hence the market trading atmosphere was fair. The transaction prices of PB fines in Shandong were mainly 860-869 yuan/mt, which was 4-14 yuan/mt higher than in the previous day, while the PB fines in Tangshan were sold at 880 yuan/mt, up 5-17 yuan/mt.

In light of favourable policies for real estate infrastructure, the market was still optimistic about the demand for iron ore. However, the downstream demand recovered relatively slow and the increase in pig iron output was limited. The rising port inventory curbed the increase of iron ore prices. The market sentiment will still change in the short term. Iron ore prices are expected to remain volatile.