SunSirs: The Fundamentals of Iron Ore are not Conducive to Price Upward
May 30 2023 14:05:17
The latest price of iron ore (Australia) (May 29): 801.89 RMB/wet ton, fluctuating in the future market
Key points of analysis: As of noon trading on the 29th, the iron ore price of Shangshang Society has slightly increased compared to last Friday, with an increase of 1.04%. On the 29th, the morning price of Liantie continued to open red on last Friday, and then continued to fluctuate upward throughout the day.
As of the end of afternoon trading, Liantie gained 3.83%. Iron ore futures prices have slightly increased, with active market speculation. The willingness of traders to purchase has also been stimulated and improved, and iron ore prices have begun to rebound. On the supply side, last week, the overseas shipment volume of Australia and Pakistan decreased, but the arrival situation increased. The overseas shipment cycle resumed, and the supply situation was relatively loose; In terms of demand, as coal prices continue to decrease and costs decrease, steel mills' profits further improve, production enthusiasm has been boosted, and molten iron production has also begun to increase. However, downstream steel demand has entered the off-season, so steel mills' demand for iron ore restocking is mainly based on on-demand restocking.
If steel prices continue to weaken, it will lead to a reduction in profit margins for steel mills, thereby weakening their willingness to purchase. The supply and demand side of iron ore remains relatively loose in the short term, and the fundamentals are not conducive to the upward trend of ore prices.
Future forecast: In the future, it is necessary to continue to pay attention to the operation of downstream steel mills. It is expected that short-term ore prices may rise first and then fall, and operate in a wide range of fluctuations. Futures need to prevent short-term fluctuation risks.
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