MMi Daily Iron Ore Index Report November 15 2021
DCE iron ore futures performed quite weak today, main contract has decreased by around 2.5% in a day. The spot quotation in the morning tend to slightly decreased by some traders. Some traders are more pessimistic about the iron ore price, the trading enthusiasm is quite low. While steel mills are more likely to buy on their demand, the overall deal atmosphere today was general. PBF at Shandong port dealt 600yuan/mt, and PBF at Tangshan port dealt 595-600yuan/ mt, a decrease of 10 yuan/mt over last Friday. Over the weekend, the Tangshan region issued stricter air pollution control measures, and sintering machine of many steel mills are been restricted. In the short term, local steel mills are expected to be less aggressive in purchasing raw materials. In addition, due to the recent weakening of steel prices, many steel mills are in a state of loss, all of which have weakened support for iron ore prices. In addition, the inventory of imported mine ports has accumulated for seven consecutive periods, while shipments from the four major overseas mines are still showing an increasing trend. SMM believes that the fundamentals of iron ore continue to weaken, and the negative factors are still fermenting, which provide less support on the iron ore price recently.
Source: Metals Market Index (MMi)