Latest Update in the China Iron Ore Market

Inventories of hot-rolled coils of steel sheets used to produce home appliances and cars in China extended gains this week amid high output across major steel makers and weakening downstream demand.

As of January 22, iron ore inventories across 35 ports tracked by SMM totaled 118.53 million mt, an increase of 410,000 mt from the previous week and 2.16 million mt year-on-year.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on January 22, 2021

Today, the Ministry of Industry and Information Technology (MIIT) released the list of enterprises that meet the Access Conditions for Steel Scrap Processing Industry (the eighth batch), and the list of enterprises that changed or revoked the announcement of relevant industry specifications.

China steel rebar inventories continued to accelerate increases this week.

The dollar fell for a third straight session on Thursday, with investors seeking out higher-yielding currencies, as a slew of better-than-expected US data and continued optimism about a massive stimulus package spurred hopes of a recovery in the world's largest economy.

DCE iron ore futures market soared high in the afternoon, and some traders in the physical port stock market raised up their quotations slightly. PBF was closed at 1140-1145yuan/mt in Shandong and Tangshan market, up around 10yuan/mt, mills remained tepid purchasing enthusiasm.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on January 21, 2021