MMi Daily Iron Ore Index Report August 02 2023

DCE iron ore futures declined by 1.07% today, the main contract closed at 831. The traders’ willingness to ship is general. The steel mills are not active to purchase. The overall trading sentiment of the market is less.PBF at Shandong port deal 867 yuan/mt,decrease 8 yuan/mt. SSF at Shandong port deal 735 yuan/mt. PBF at Tangshan port deal 885 yuan/mt,decrease 8 yuan/mt. From the perspective of the industrial chain, the profits of steel mills can still be superimposed. Some blast furnaces are about to resume production, and there is little possibility of large-scale production reduction in the short term, supporting the demand and price of iron ore. However, with multiple rounds of rising coke prices, steel mills’ profits have been squeezed to some extent, and the market is concerned about the sustainability of steel mills’ profits. Fundamentally speaking, there is still a demand for iron ore replenishment, which provides some support for port dredging volume. From the perspective of restocking varieties, due to the continuous resumption of production of Tangshan blast furnace, the demand for bulk ore may decrease. Overall, short-term iron ore prices may fluctuate and consolidate at high levels.
Source: Metals Market Index (MMi)