MMi Daily Iron Ore Index Report for May 13 2020
The iron ore market continued to be bullish today, and some traders increased their quotes by 5-10yuan/mt in the physical port stock market. Mills demand was stable as some of them have replenished some earlier this week. According to SMM, mills profit margins have declined. Mills preferred to purchase low grade products, and as a consequence, the price spread between high/medium and low grade products c ontinues to fall. However as the inventory for high/medium products at ports has fallen, while some low grade iron ore products inventory turned to grow, the price spread between high/medium and low grade products may maintain relatively flat in the short term. Vale’s product availability has recently became the topic in the market, and some mills say this increased their purchasing difficulties in the port stock market. According to SMM, current IOCJ and BRBF inventory in China’s six major ports dropped by more than 18% over that in early May, so prices for Vale’s products may remain relatively firm.
Source: Metals Market Index (MMi)