MMi Daily Iron Ore Index Report May 29 2023

DCE iron ore futures rose by 4.89% today, the main contract closed at 719.The traders’ willingness to ship is general. The steel mills are not active to purchase. The overall trading sentiment of the market is general. PBF at Shandong port deal 771-780 yuan/mt. Last week, mining prices suffered consecutive declines due to the impact of news, while recent pessimism has dissipated and the market has rebounded in a restorattive manner; In addition, there are rumors in the market today that manufacturing enterprises have tax incentives, which have not been confirmed, but the market mentality has fluctuated accordingly. From a fundamental perspective, the total global iron ore shipments of SMM this week were 30.18 million tons, a decrease of 2% compared to the previous week; The total arrival volume of Chinese ports was 23.9812 million tons, a decrease of 4.77% compared to the previous month. On the demand side, some blast furnaces are expected to resume production this week, but steel mills have average profits, and the resumption of production may be delayed. The incremental production of molten iron is limited. There has been no significant short-term change in fundamentals, while there have been significant changes in news and sentiment. It is expected that ore prices will continue to fluctuate broadly in the short term.

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Source: Metals Market Index (MMi)