Chinese iron ore and steelmaking prices February 01 2018
Iron ore spot market prices mainly move stable today. Traders wait for further market changes. Steel mills make purchases based on their own demand, pushing up iron ore stocks steadily. Some traders have shown strong desire to boost sales, in particular for PB fines at Shandong ports and mainstream iron ore fines with lower grade at Tangshan ports.
Moreover, futures market dives this morning and thus steel mills are bearish towards the following market. Spot transactions weakened largely along with a downside room of RMB15-20/tonne. Most traders expressed that steel mills’ procurement remained favorable before holiday, while underselling appeared due to large decline in futures market. It is because many of them hedged in the futures market, which makes iron ore transaction prices hard to move up. According to steel mills, demand for iron ore is likely to see narrow growth, their iron ore inventories climbed after recent replenishment. The following procurement will depend on the market price. Iron ore market is hard to see marked improvement in the near term.