MMi Daily Iron Ore Index Report January 11 2022
DCE iron ore futures rose largely today. the main contract closed 723.5. an increase of 2.77% throughout the day. The quotation in the morning was increased by 10 yuan/mt over yesterday. some traders give more bargain space on some brands and their negotiation pattern is more flexible. steel mills purchased on demand. PBF at Shandong port dealt 825-830 yuan/mt, increased 10-15 yuan/mt over yesterday; SSF at Shandong port dealt 525 yuan/mt, increased 15 yuan/mt over yesterday. IOCJ at Tianjin port dealt 1042 yuan/mt; According to data tracked by SMM, 73 ships arrived at domestic main ports in January 3 – January 9. Arrivals of cargoes are estimated to stand at 11.07 million mt, down 0.47 million mt from the previous week and down 5.22 million mt year on year. Shipments that departed Australian ports were estimated to decrease 3.75 million mt week on week to 17.5 million mt, up 1.32 million mt on the year. And that from Brazilian ports decreased 0.7 million mt to 4.89 million mt on a weekly basis, down 0.71 million mt on the year. The total arrivals of imported ore decreased from the prior week, and the combined shipments from Australia and Brazil also decreased significantly. Recently, the environmental protection restrictions in north China loosened, and some blast furnaces resumed their production. Meanwhile, there still existed some restocking demand from steel mills ahead of the Chinese New Year. As such, the demand for iron ore rose, boosting ore prices. Furthermore, the shipments from Brazil decreased amid rainstorm, reducing the total ore supply. Hence, the iron ore prices are likely to demonstrate some upside momentum in the short term.
Source: Metals Market Index (MMi)