DCE iron ore futures continued to downward today, main contract I2201 decreased by 3.73% throughout the day. The spot price in the morning has lowered by 10 yuan/mt from yesterday. Steel mills are more likely to buy cautiously due to the continuously decreasing iron ore price, and the overall deal atmosphere was depressed today. Some steel mills think that the price will hover at low level in the short term, so they buy raw materials on their demand. PBF at Shandong port dealt 1083yuan/mt, down 22-42 yuan/mt over yesterday; SSF at Shandong port dealt 750-760yuan/mt, down 10-20yuan/mt. Recently imported iron ore inventory continued to gradually increase, spot iron ore price still has more pressure to rise. Furthermore, steel price also decreasing due to unforeseeable steel demand, the support effect on iron ore price has gradually decreasing.

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Source: Metals Market Index (MMi)