MMi Daily Iron Ore Index Report January 06 2021

Physical port stock quotes traded in a flat manner today. Some traders reduced their negotiating space as DCE futures inched up during the
afternoon.
PBF traded at 1120yuan/mt and 1118 yuan/mt in Shandong market and Tangshan respectively. Mainstream medium and high grade products are still popular given strong coke prices and mills demand for lump increased. According to SMM, some small and medium mine enterprises in Northeast China have started to conduct maintenance due inclement weather, which encouraged local mills to increase their procurement of imported iron ore products. Also according to SMM, most mills have stated that they have already started or plan to restock in January. Given a pandemic relapse in domestic areas, some transactions are likely to be impacted in the short term, which may lower some mill demand for iron ore.

Source: Metals Market Index (MMi)