MMi Daily Iron Ore Index Report for May 11 2020
Physical iron ore port stock quotes were flat over last Friday, though some traders signalled their intent to trade when the DCE iron ore futures market moved slightly higher. There were few inquiries from mills and total transactions concluded was low. Some mills in North and Central China have said they lowered use of Vale’s products like BRBF and IOCJ due their low economics and a tight supply. According to SMM, the current price spread between BRBF and PBF in the port stock market has risen to 75 -85yuan/mt, compared to last year when it was 40yuan/mt. Considering the increasing operating rate of blast furnace and decreasing in-plant inventory, iron ore prices may still enjoy certain support.
Source: Metals Market Index (MMi)