MMi Daily Iron Ore Index Report May 17 2023
DCE iron ore futures rose by 2.96% today, the main contract closed at 747.5.The traders’ willingness to ship is better . The steel mills are not active to purchase. The overall trading sentiment of the market is less. PBF at Shandong port deal 788-800 yuan/mt,increase 1-13 yuan/ mt.PBF at Tangshan port deal 837 yuan/mt,increase 16-20yuan/mt. At today’s National Development and Reform Commission meeting, measures were proposed to increase the investment of medium – and long-term loans in the manufacturing industry, as well as to develop new energy vehicle consumption, which has boosted market sentiment. Fundamentally speaking, according to SMM research, some steel mills have alleviated inventory pressure on finished products, and their profits have been slightly restored, supporting the producƟtion of molten iron and the consumption of iron ore. However, the market is concerned about the ustainability of steel mill profits and whether steel prices are firm, and there is still a risk of a new round of negative feedback from steel mill production cuts. In the short term, ore prices are still greatly affected by news and financial sentiment. In the medium to long term, the supply and demand pattern of iron ore may change, and ore prices may fluctuate weakly.
Source: Metals Market Index (MMi)