Traders'morning offers saw no obvious changes. Traders were generally active to submit their quotations and they show obvious desire to deliver cargos. Iron ore spot market keeps flat influenced by falling futures and derivatives market and steel mills also take strong wait-and-see attitude against the backdrop. Steel mills’ purchases focus on mainstream middle and high grade fines.
Iron ore spot market seems slack and both supply & demand stands weak. Based on transaction data in recent days, mainstream middle and high grade fines dominate the market. Lumps and pellets transaction witnesses poor performance. On the one hand, steel mills basically maintain a high level profits and stocks of steel products stand at a low level. Steel mills raise the grade and mainstream cargo usage in blast furnaces to gain more profits. On the other hand, steel mills’ demand for mainstream middle and high grade fines is rising continuously and their usage of lumps and pellets decreases.
Most steel mills wait for further market changes supported by stocks. Some small traders said that demand of steel mills grows continuously and iron ore prices are expected to increase given rising demand. Thus, they are willing to purchase mainstream cargos recently. Large traders make cargo shipments as planed and focus on selling their own stocks. Steel mills replenish their stocks based on real demand.
Sources:XINDE MARINE NEWS
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