SMM daily comment on domestic iron ore market (Aug 23)

SHANGHAI, Aug 24 (SMM) –

Iron ore concentrate prices stood stable in western Liaoning. Prices of 66 grade wet basis were 770-780 yuan/mt (tax-excluded). Local steel mills lowered bids for iron ore concentrate by 30-40 yuan/mt in two weeks. A big bulge in imported iron ore concentrate prices was felt from impact of bullish ore concentrate futures market. In addition, price–performance ratio of domestic ore iron concentrate increased. It is expected that prices of domestic ore concentrate will be supported.

The local beneficiation plants were in normal production, but freight fees hiked as sales and transportations were hindered by strict investigation on overloading. There was absent clear information about production limit, and most of BF-based steel mills were still in normal production, except for some normal maintenance. It is expected that robust demand and bullish imported iron ore concentrate futures market may leave iron ore concentrate prices in western Liaoning with room to hike.