Aug 11th, 2021 CFR Qingdao, USD/dry tonne DCE iron ore futures market bounced up from the continuous slump in the past few weeks, traders held their quotations relatively firm and PBF was closed at 1155-1160yuan/mt in Shandong market, mixed with small ups and downs over yesterday. As the price falling of mainstream medium iron ore products accelerated recently, including PBF has higher cost performance for the moment. SMM’s data showed the price spread between PBF and SSF has shrank to current 380yuan/mt from more than 450yuan/mt in this early July. And thus, the prices for mainstream medium products in the short run will enjoy certain supports. Besides, according to SMM’s calculation, steel mills profits for rebar have ascended to more than 660yuan/mt and that for HRC even reached more than 1000yuan/mt, based on iron ore price of 172USD/mt, which will stimulate steel mills’ purchasing enthusiasms in raw materials, especially when majority steel mills have relatively low-level in-plant inventories.

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Source: Metals Market Index (MMi)