Chinese iron ore and steelmaking prices January 11 2018
Morning offers of iron ore on DCE saw large fluctuations today and thus partial small-sized traders had obvious desire to deliver cargo. Steel mills show unfavorable purchasing desire as spot market transactions increased intensively. Transaction volume reaches 700,000 tonnes or so in major ports of north China. Steel mills have started winter stock replenishment and high grade fines demand will climb up in the coming days. Some steel mills are willing to purchase high grade lumps.
Iron ore spot market witnesses fair performance, while real transactions decrease compared with that of yesterday. Many transactions today focus on traders’ stock replenishment. Traders said that steel mills should begin stock replenishment in advance. Rising demand will support iron ore prices in recent days. Additionally, middle and high grade iron ore resources are in shortage in some ports and the shortage will continue in the short term. Thus, traders are bullish towards the following market. Iron ore transactions have seen continuous upturn and transactions are mainly concluded at port Tangshan and Shandong. Iron ore spot stocks are predicted to maintain a low level given the production limitation & reduction policies previously.