MMi Daily Iron Ore Index Report for May 14 2020
Despite a strong showing in the DCE iron ore futures market today, mills were less willing to accept the rising prices. Some of them purchased in small amounts as traders increased their quotes, though total transactions were down on yesterday. PB Fines rose in Shandong and Tangshan . Lump demand has recently picked up slightly due to it increasing cost performance, especially as low alumina product supply remains tight. Mills in Tangshan may have control movements for ensuring air quality, so the demands for lump will rise to high levels in th e short run. However, current inventory at ports along with the increasing coke price may restrain the lump premium. Some mills in South China may decrease their lump demands when the rainy season comes, this will also pressure lump prices to some extent.
Source: Metals Market Index (MMi)