SMM daily comment on imported iron ore market (Aug 8)

SHANGHAI, Aug 9 (SMM) –

The most-traded DCE 2401 iron ore contract retraced down after a hike, and closed down 0.28% at 716 yuan/mt yesterday. Some traders operated on order-by-order basis, while steel mills stayed on the sidelines, and had less demand. Iron ore market activity appeared tepid yesterday. The transaction prices of PB fines in Shandong were mostly 850 yuan/mt /mt, up 8 yuan/mt on the day. The transaction prices of PB fines in Tangshan were 835 yuan/mt, which was 5 yuan/mt lower than the previous trading day. Iron ore import was announced yesterday, and the import volume in July decreased by 2.1% MoM to 93.476 million mt. Weighed down by constant news of crude steel output reduction since late July and the typhoon, demand from steel mills and traders shrank. But at present, the news was not really implemented by now. In spite of a mild drop in profits, steel mills had passable incentive to produce. There will be red-hot demand for iron ore in a short term, supporting ore prices. It is expected that ore prices will fluctuate at a high level in the short term, and there is still room for the ore prices to dip in the medium and long term.