Traders’ morning offers edged up by RMB5-10/tonne today. Traders are willing to deliver cargos, while there is little price negotiation room. Partial traders hold their spot prices firm supported by few iron ore stocks and rising mainstream ore demand. Steel mills still have demand for mainstream resources. They generally hold wait-and-see attitude towards non-mainstream cargos.
Spot market transactions stand fair and focus on mainstream fines. Non-mainstream cargos, lumps and pellets transactions stand unfavorable. FB fines and SSF demand shows obvious difference influenced by cost performance in recent days. FB fines transactions start to edge up and demand is growing continuously. Spot market transactions are mainly witnessed at ports Tangshan and Shandong. Transactions along the Yangtze River and northeast China are also slack.
It’s learnt that iron ore spot stocks of large, middle and small steel mills could maintain normal production for 35 days above, 15 days or so and 7-10 days respectively. Iron ore usage of steel mills maintains a low level. Iron ore demand is expected to rise continuously influenced by profits of steel products and future market expectation. Traders face large difficulties in hedging under continuously growing futures and derivative market. They are estimated to postpone cargo shipments.
Sources:XINDE MARINE NEWS
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