MMi Daily Iron Ore Index Report May 26 2023

DCE iron ore futures market rose sharply trends in the afternoon. the main contract closed 709.5. an increase of 3.96% throughout the day. Some traders adopt separate quotations. Some steel mills wait-and-see sentiment increased, and purchasing enthusiasm is not high. total transactions remained insipid. PBF at Shandong port dealt 755-773 yuan/mt; decreased 15-20 yuan/mt over yesterday. SSF at Hebei port dealt 640-650 yuan/mt; increased 0-10 yuan/mt over yesterday. As of May 26th, the total inventory of 35 ports tracked by SMM was 124.39 million tons, unchanged from last week and a decrease of 3.12 million tons compared to the same period last year. According to SMM shipping data, the arrival volume of major ports in China has slightly increased this week; On the demand side, due to a decrease in the number of steel mill inspections and a slight increase in iron ore production, the demand for iron ore has been supported, resulting in little change in inventory at Port 35. In the future, the end of season momentum of overseas mines is approaching again, with loose supply in the second quarter compared to the first quarter, But this year, steel demand is weak, steel mills are less willing to restock raw materials, and the port inventory accumulation time is ahead of schedule. However, considering the cost of non-mainstream mines and the current support of high-speed rail production for ore prices, it is expected that the ore prices will fluctuate next week.

Source: Metals Market Index (MMi)