DCE iron ore futures has kept falling and drop largely in the afternoon，main contract closed 650.5，a decrease of 8.7% throughout the day. The spot quotation in the morning almost kept steady. But as the continuous decline, some traders quote less actively. Some traders give more bargain space on some brands and their negotiation pattern is more flexible. Some steel mills tended to be wait-and-see, and purchasing enthusiasm is not high. Total transactions remained insipid. PBF at Shandong port dealt 818 yuan/mt, decreased 40-50 yuan/mt over yesterday.Recently, steel production restrictions pressure continues to increase, purchasing enthusiasm of raw materials for steel mills seems to be difficult to improve. The latest requirements from Tangshan Chamber of Commerce yesterday show that, iron and steel enterprises with 2 sintering machine should stop one, steel mills with one sintering machine should limit of 50%, the requirement should finish before 22 o ‘clock last night. Another law enforcement bureau of the Ministry of Ecology and Environment is also carrying out supervision and inspection of iron and steel enterprises. It is expected that with the heating season and the Winter Olympics approaching, environmental restrictions in northern areas will be stricter, iron ore demand is expected to continue to pessure-bearing.
Source: Metals Market Index (MMi)