DCE iron ore futures closed slightly higher than yesterday, although it hit the lowest 735 during trading period. PBF at Shandong port quoted as 1110- 1120yuan/mt in the morning, down 40yuan/mt over yesterday’s deal price. Although DCE iron ore futures tend to be better since today’s performance, the spot price still continue to decrease. PBF at Shandong port dealt 1002-1015yuan/mt, down 60-75yuan/mt over yesterday. PBF at Tangshan port dealt 1005- 1010yuan/mt, down 30-35yuan/mt. Iron ore inventories across 35 ports tracked by SMM totalled 120.33 million mt as of August 20, up 1.68 million mt from a week ago and 14.45 million mt from a year ago. Daily average deliveries from the 35 ports decreased 72,000 mt on a weekly basis to 2.67 million mt last week. Mills properly restocked cargoes as imported iron ore prices continued to trend lower. Multiple mills are subject to production restrictions, with lower inventories, on the back of BF maintenance in Jiangsu and environmental protection measures in Tangshan on Winter Olympic Games. Although arrivals of imported iron ore declined, port stocks continued to accumulate. Shipments from Australia trended lower due to port maintenance. The increase of port inventories are expected to slow down as arrivals of imported iron ore decline.
Source: Metals Market Index (MMi)