MMi Daily Iron Ore Index Report December 23 2022

DCE iron ore futures declined by 0.18% today, the main contract closed 825. PBF at Shandong port dealt 822-830 yuan/mt,increase5-8 yuan/mt; PBF at Tangshan port dealt 828 yuan/mt. As of December 23, the inventory of 35 ports tracked by SMM totaled 1300.1 million tons, down 620000 tons from last week and 22.06 million tons from the same period last year. The average daily port dredging volume of imported ore in this period decreased by 45000 tons to 2.927 million tons on a weekly basis. Although the steel plant resumed production as planned this week, the hot metal output increased slightly, but the iron ore price was high, the steel plant’s willingness to replenish the warehouse was weak, and the demand for iron ore declined. Some ports in the north are closed due to strong winds, so the port dredging volume decreases slightly. In addition, the continuous increase of the ore price and the rise of the coke price have increased the pressure on the steel mills’ capital, slowed down the pace of iron ore replenishment, and the steel mills turned to wait and see. The current market continues to consume the optimism in the early stage. Considering the frequent impact of the news, it is expected that the ore price will mainly fluctuate in a wide range next week.

Source: Metals Market Index (MMi)