Imported Iron Ore Prices At Domestic Ports To Fluctuate Strongly As Steel Inventory And Apparent Demand May Perform Well
The most-traded DCE 2309 iron ore contract was volatile yesterday, closing up 0.06% at 770 yuan/mt. Traders held offers firm, and steel mills restocked as needed. The wait-and-see sentiment in the market intensified, and the overall transaction was poor. The transaction prices of PB fines in Shandong were mostly 815-828 yuan/mt, which was 2-10 yuan/mt lower than a day earlier. China’s iron ore import volume in May was 96.18 million mt, an increase of 6.3% month-on-month and 4% year-on-year. The growth was mainly due to recovering shipments after impact of seasonal factors faded. According to SMM data, Brazil’s shipments increased significantly from April to May, while Australia’s shipments fluctuated slightly. In view of a shorter month and seasonal factor, SMM expects iron ore arrivals at Chinese ports to drop slightly in June. Considering that today’s steel inventory and apparent demand may perform well, it is expected that ore prices may still fluctuate strongly today.