MMi Daily Iron Ore Index Report January 28 2021

DCE announced on new iron ore products, including Bengang concentrates, IOC6, Kumba and Ukraine concentrates as deliverable products into itswarehouses, which will further expand iron ore available for delivery. DCE also reduced iron ore futures storage fees from 0.5yuan/mt to 0.3yuan/mt per day, helping iron ore delivery costs going down. In view of this, DCE iron ore futures market plummeted, and some of the physical port stock prices fell sharply. PBF was closed around 1130yuan/mt in Tangshan market while that in Shandong slumped to around 1090 -1100yuan/mt. There were few transactions as some mills held back, expecting lower prices, while some traders chose to stand on the sidelines before the holiday. In consideration of gradually weakening supply and demand fundamentals, iron ore prices remain volatile in the short run.

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Source: Metals Market Index (MMi)