Iron ore physical prices dropped sharply when DCE iron ore futures market vibrated downward. PBF was closed at 1320- 1350yuan/mt in Shandong market, with price decline of 15-58yuan/mt. Some EAF steel mills from South China gradually shut down due to power rationing policy, and the resumption time remained unknown. Prices for scrap steel and iron ore are still undergoing growing pressures when reduction policy in crude steel production continues to be pushed forward. Besides, mainstream iron ore products at domestic ports kept accumulating recently and prices for mainstream medium iron ore products fell off obviously. And thus, the price spread between high grade and medium grade iron ore products expanded quickly, and meanwhile, that between medium and low grade iron ore products shrank continuously as well.
Source: Metals Market Index (MMi)