SHANGHAI, Sep 1 (SMM) – Iron ore futures prices were in the negative territory all day long yesterday, with the most-traded 2301 iron ore contract closing down 1.72% at 685 yuan/mt. Traders were active in selling, while steel mills increased purchases. The transaction prices of PB fines in Shandong were mainly 725-728 yuan/mt, which was 5-15 yuan/mt lower than in the previous day, while super special fines were sold at 630 yuan/mt, down 5 yuan/mt. The transaction prices of PB fines in Tangshan were 733-735 yuan/mt, which was 3-5 yuan/mt lower than the previous day's price.
With the resurgence of the pandemic in some parts of China, the pessimism in the market has increased. Optimism over the traditional peak season subsided. According to SMM survey, the average operating rate of blast furnaces of steel mills rose 1.19 percentage points from a week ago to 94.35% as of August 31.
At present, the raw material inventory of steel mills is low, hence the restocking demand will somehow support iron ore prices. It is expected that iron ore prices will move in a wide range in the short term.
