MMi Daily Iron Ore Index Report May 26 2021

DCE iron ore futures performed relatively weak and the decline speed accelerated in the afternoon. Main contract of iron ore fell more than 6% throughout the day. Physical port quotations were mixed, some traders increased slightly while others kept the price stable from yesterday. PBF at Stanndong port dealt 1345yuan/mt, 0-5yuan/mt down from yesterday. According to SMM physical port price, high – medium grade iron ore price difference maintained around 250yuan/mt, similar to the same period of last month. However, the price differnce between medium and low grade iron ore has increased 100yuan/mt from last month to 350yuan/mt currently, the cost performance of low grade iron ore began to imporve. Additionaly, the steel price in China’s long- process steel mills has decreased to a quite lower level that resulting from decreasing steel priices , with gradually shrinking profits, low grade iron ore demand are expected to increase.

Source: Metals Market Index (MMi)