Steel market fluctuated at the low level recently, but iron ore price in Hebei market did not be affected. In turn, some steel mills were enthusiasm in purchasing, which drove iron ore price to increase slightly with stabilization.

Source from markets noted that many medium and small mines have stopped
production approaching to National Day, while the previous inventories
of mines are not too large, therefore, miners show optimistic attitude
to later market and the offers all increase slightly. Faced with the
lift of miners, steel mills did not avoid or restrain instead purchase
successively. Because steel mills’ purchase is not large and the
miners’shipments do not turn better, so the price rising is not big
recently. 

Insiders believed that the slight increasement in ore price is not a
trial lift of miners. It mainly stems from the high imported price and
strong domestic demand of steel mills. In addition, the drop of steel
and billet slows down recently and steel mills hold positive attitude
to the later market, so many steel mills has plans for stock before a
significant increase of ore price. However, due to the funds shortage,
many steel mills can not be able to stock greatly as scheduled in
previous days.

As for spot market, the price of 65% acid powder (dry) is 820 yuan per
ton including tax in Tangshan area and 66% alkali powder (wet) in Wuan
is 660 yuan per ton excluding tax, up 10 yuan per ton. Because steel
mills will continue to produce during National Day and more steel mills
are making up orders recently, which support ore spot price to increase
slightly. It is predicted that later ore market tends to be good.

Source: MetalBiz

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