MMi Daily Iron Ore Index Report December 03 2020

Bullishness continues to pervade the Iron ore markets today. PBF traded between 905-915yuan/mt in Shandong and Tangshan. Mill procurements dipped as inventories were topped up to comfortable levels. Some mills in central and southern China are heard to undertake some gradual restocking from December and traders in the port stock market are eager to take advantage of likely higher offers. According to SMM, mills profit margins for rebar and HRC hover around 250-300yuan/mt, based on a seaborne iron ore price of 133 USD/mt. Some mills have gradually increased their lump procurements as rising pellet premium make lump more economical.