MMi Daily Iron Ore Index Report January 30 2019

Iron ore DCE Futures market quickly went limit up today, on the back of news that they will cut annual production by 10%. Some traders are reluctant to sell, expecting higher prices in the future. Vale announced about 40 million tons of iron ore will be affected this year, including pellet feed needed for the production of 11 million tons of pellets. According to SMM, the actual production cuts may be not necessarily reach that high as their production in other mining systems may offset some of these cuts. Meanwhile, as market players are gradually easing their way out of the market for CNY, the transactions concluded transactions remain subdued.

Source: Metals Market Index (MMi)