Small adjustment of iron ore market as a whole

The iron ore market as a whole was slightly adjusted during the week (December 3 ~12 7th). Among them, the price of imported iron ore slightly increased, domestic iron ore prices steadily downward. At the beginning of the week, in the steel market steady rebound, import iron ore period offer rise of the driving role, the spot market also showed a halt to the trend. Approaching the weekend, traders are highly motivated to ship because of the shortage of high-grade resources available for trade at the port. Steel plant procurement mentality in general, more than follow suit, to the demand to fill the library mainly, the acceptance of price increases for traders is not high. Steel price wide-width shock caused steel mills to try to compress the cost of the furnace, procurement targets also from high-grade steering medium and low grade. Domestic iron ore market weak operation, steel mill harvest rhythm slowed down, inquiry is not active, the market trading enthusiasm is poor, mine powder inventory has accumulated, most mining enterprises offer more firm, market price stability. Some steel mills are in different degrees of shutdown, maintenance status, iron ore demand has been reduced, the number of search merchants has decreased, large mineral processing enterprises quoted stable, therefore, the mainstream market prices fluctuate little. The main factors affecting the market: first, the current import iron ore prices after a continuous downward trend, steel plant procurement sentiment has improved, so that the price of imported iron ore to maintain a strong, transactions have improved, overseas mining resources to the port is still low. Steel mills because of the low stock of iron ore, there is still a certain need to fill the bank. Some mineral processing manufacturers and traders because of the high cost, low price shipping will not be strong. Second, steel mills to buy iron ore is not strong. Recently, the steel market profits have narrowed sharply, coupled with the downstream market demand is not strong, steel mills difficult to have the phenomenon of volume procurement. At present, the steel market main body demand situation is difficult to recover, also means that there is no obvious trend towards good operation, so the iron ore market borrowing capacity is unlikely to rise.

The main factors affecting the aftermarket: Steel Market concussion operation. On the one hand, although the current steel profits have receded, but relatively in previous years there is still a large profit. In the case of environmental production restrictions to eliminate the "one-size-fits-all" and steel market profits are fair, steel mills actively cut production is unlikely; on the other hand, some steelmakers have improved their profitability as steel prices have rebounded.

Affected by this, the gradual recovery of steel plant procurement, coupled with the low inventory of steel mills, will enhance its willingness to fill the iron ore, the price of iron ore will play a certain supporting role. High-grade iron ore supply is tight. First, the recent low level of iron ore to port resources, coupled with the slow progress of steel mills production restrictions, the Port iron ore inventory continued to decline, the second is the impact of heavy pollution weather, some areas of blast furnace production restrictions policy or will be significantly tightened, steel mills demand for iron ore will also be seasonally reduced, and third, with the recovery of Australian mine shipments,

The share of high-grade Australian iron ore in the inventory of imported iron ore ports has increased, and the pressure of high-grade iron ore supply in the later period may gradually appear. To sum up, overseas mine shipments have recovered, to the port volume after 3 consecutive weeks of decline after the rebound, at the same time December for the mine delivery of the traditional peak season, the late supply pressure or will gradually increase. As a result of the sharp contraction in steel market profits, most steel mills or continue to maintain low inventory operation, varieties are still dominated by mainstream Australian powder and medium and low grade iron ore. At present, the utilization rate of blast furnace capacity, iron production, shugang volume and daily consumption all continue to decline, indicating that the downward trend of iron ore demand is more obvious. Therefore, the late domestic iron ore market is expected to run a weak shock.

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