Latest Update in the China Iron Ore Market

DCE iron ore was was shocked and continued upward all the day.The main contract closed at 809,increased of 6.31%. Traders are generally motivated to ship, steel mills are mainly on the sidelines, and there are few transactions in the market.

On the demand side, blast furnace maintenance was frequent amid poor terminal demand and expanding losses, and the demand for coke contracted as well.

According to data tracked by SMM, 71 ships arrived at domestic main ports in June 20-26. Arrivals of cargoes are estimated to stand at 10.77 million mt, down 0.68 million mt from the previous session and down 1.09 million mt year on year.

Stainless steel prices kept falling after opening yesterday (June 27), and hit a low at 16,595 yuan/mt since December 2021. The contract recorded a loss of 3.34% to 16,635 yuan/mt as of closing of the day session.

DCE iron ore was was shocked and continued upward all the day.The main contract closed at 736,increased of 0.96%. Traders are not very enthusiastic about shipments, steel mills are mainly on the sidelines, and there are few transactions in the market.

Iron ore prices stabilised since last Thursday after falling for quite some time. The futures contract once recorded a gain of nearly 5%, and finally closed that day with an increase of 3.96% to 775 yuan/mt.

More steel mills are likely to carry out maintenance, which will significantly pull down the overall supply. Hence the fundamentals of steel will improve marginally. However, SMM believes that due to the off season, the end demand is not enough to support the sharp rebound in steel prices. It is expected that the short-term finished product prices will follow the cost side with downward potentials. In addition, since the current production reduction of steel mills is mostly focused on rebar, rebar prices are expected to outperform that of HRC.

DCE iron ore was was shocked all the day.The main contract closed at 736,increased of 0.96%. Traders are not very enthusiastic about shipments, steel mills are mainly on the sidelines, and there are few transactions in the market.PBF at Shandong port dealt 805 yuan/mt,keep stable compare with yesterday.