The iron ore market is generally weak and oscillating

During the week (October 16 to October 20), the iron ore market was generally weak and volatile. Among them, the price of imported iron ore is slightly weaker, and the price of domestic iron ore is stable. The imported iron ore market as a whole showed a consolidation trend, and the prices of individual varieties were slightly adjusted. At present, the price of imported iron ore is relatively low, and the spot traders with mainstream resources are not willing to sell at a low price, while the stage of “purchasing season” for most steel companies has passed, and the limited production of blast furnaces is highlighted. The mentality is strong, and the market price is mainly fine-tuned. Affected by the limited production of steel mills, the price difference between high and low grade iron ore has narrowed. The pellet resources are relatively tight and the market demand is relatively strong. The domestic iron ore market as a whole stabilized and weakened, and the overall transaction status was not good. The domestic steel market is difficult to change, and the operating rate of blast furnaces in some steel companies has declined. The overall demand for iron ore has been limited. The price of iron ore has declined. Some domestic mining companies have responded with reduced production. Although the iron ore output of major foreign mining companies has increased, the circulation of mainstream varieties is still insufficient. The main factors affecting the market: First, the multi-site mines and concentrating plants have stopped production, and in some areas, the implementation of the limit number policy has increased production and transportation costs. Second, the overall supply and demand situation of the domestic iron ore market is relatively stable. The supply of iron ore remains high, but due to cost and other issues, the willingness of the miners to sell at a low price is not strong, and the market's operational resources are relatively scarce. Steel profit margins have been squeezed, and steel mills are mostly cautious in iron ore procurement. The main factors affecting the market outlook are:



The steel market is weak and volatile. With the approaching of the heating season, environmental protection and production restrictions have been implemented one after another. Steel production will gradually decrease in the later period, and steel prices may rise, but it is difficult to continue to rise sharply. First, the “2+26” urban air pollution control measures have promoted market expectations. The increase in steel prices in the previous period has increased the willingness to increase production capacity in various regions, which is not conducive to the smooth operation of the steel market in the later period. Second, although the price of iron ore has declined. However, the prices of coal, coke and scrap steel continued to rise, coupled with the increase in environmental protection costs of enterprises, the pressure on operating costs of steel companies in the later period increased.



Iron ore prices are under pressure. Under the influence of environmental protection and production and heating season policies, the production capacity of steel mills in some regions has declined, and the demand for iron ore has weakened. On the one hand, in the case of high steel profit, the demand for high-grade iron ore is better, and the iron ore price is slightly supportive; on the other hand, the limited production of blast furnace in the heating season will affect the demand of iron ore, the future iron The ore fundamentals are not optimistic.



In summary, with the increase in iron ore imports, port inventories have increased significantly, and there is still room for growth in late port stocks. Affected by 50% of the limited production of steel mills in some regions, there is a large downward pressure on iron ore spot and futures prices, but there is still a strong demand for mainstream medium and high grade iron ore. It is expected that the domestic iron ore market will be weak and stable in the later period.

       Xi'an Pengyuan Metallurgical Equipment Co., Ltd. was established on February 20, 2017. The company is located in Xi'an, Shaanxi, China. Its main business is the design and manufacture of metallurgical equipment (electric arc furnace, submerged arc furnace, ladle refining furnace, other refining furnaces and metallurgical auxiliary equipment). The company's vision is to become a service-oriented leading enterprise that can provide users with advanced and applicable complete smelting technology solutions. The company is determined to make “Pengyuan Metallurgy” into the electric furnace industry. Excellent brand. Pay attention to us, keep abreast of the latest developments in the industry, hotline: 13819831910.