MMi Daily Iron Ore Index Report February 17 2022

DCE iron ore futures market falling sharply trends by 3.79%.the main contract closed 684.5. Most traders adopt separate quotations. Market wait-and-see sentiment increased. some traders were negative to sell, Some steel mills tend to buy due to suitable price, Today the overall market transaction atmosphere is acceptable. PBF at Shandong port dealt 830-842 yuan/mt, decreased 30-40 yuan/mt over yesterday; SSF at Shandong port dealt 500 yuan/mt, decreased 20-30 yuan/mt over yesterday. PBF at Tangshan port dealt 835-842 yuan/mt, decreased 20-25 yuan/mt over yesterday; This week, SMM’s blast furnace operating rate stood at 77.7%, up 0.2 percentage points week on week and down 2.96 percentage points month on month. This week, the blast furnace operation rate rose slightly from the previous month, mainly because the air condition in North China improved significantly this week, and the blast furnace temporarily controlled and restricted last week has basically resumed production. Follow-up, although the winter Olympics production limit weekend ended, but March 3 – March 13 there are Paralympics production limit. According to SMM research, most steel mills choose to maintain production limit during this period, so in the short term, the operation rate of blast furnace is stable, iron ore demand is difficult to improve, and the price of ore continues to shock operation.

Source: Metals Market Index (MMi)