China’s imported iron ore market remains robust on Monday. Iron ore lumps and pellets will continue to find support due to restriction of production control in Tangshan, while PB fines demand in Tangshan is to remain weak on sintering cut. However, steel mills’ buying interest for PB fines improve owing to the digestion previously and improved quality. Tangshan billet saw continuous price hike on Sunday after a decline on Saturday, signalizing a better sentiment in downstream market.
Traders are active in delivery while transaction in Shandong region is hindered by typhoon and rainy weather. Steel mills are not eager to stock up on Monday albeit the slight price increase will not affect their procurement given good profitability. The production control in Tangshan leads to more alternatives for steel mills in other region. Transactions are done mainly in coastal ports. PB fines are traded at RMB465-467/tonne in Shandong, Newman fines at RMB480/tonne; MAC fines are traded at RMB465/tonne in Tangshan, PB lumps at RMB625/tonne. Iron ore market is likely to remain stable due to lack of upside strength.