MMi Daily Iron Ore Index Report June 29 2020
Physical port stock prices dropped heavily today as participants returned to the iron ore market following the recent public holiday in China.
PBF traded around 760-770yuan/mt in Shandong and around 780yuan/mt in Tangshan. Iron ore port inventories rose once again last week, which was mainly caused by the increasing supply of ore from mines whilst mill demand has been slowly dropping away. There was another round of air quality production controls for steel mills implemented in Tangshan for July, which was also exacerbated the iron ore price drop. The majority of mills are likely to have little purchasing appetite as prices drop, whilst traders are cautious and reluctant to conclude deals as they look for the bottom.
Source: Metals Market Index (MMi)