Treasure Island: The iron ore scenery is hard to do before the holiday

The steel market, which has been trapped by slumping demand since September, has experienced a continuous decline for a month. Under the condition of peripheral capital crisis, the outlook of the steel market remains worrisome, and the iron ore price that is almost equal to the high level during the year has to be forced. With a sharp drop, it will be difficult to do anything before the National Day.

First of all, from the standpoint of steel enterprises: since the Jin nine years, the domestic steel prices have remained generally low and oscillated. As of now, the price of steel products has continued to increase, and at the same time as the steel price plummeted, major steel mills have also seen inventory. Continuous upward trend. In the case of insufficient funds, steel mills lowered the purchase price of iron powder in order to avoid risks. Because most steel mill stocks remain low and iron ore prices are closely watched, procurement demand has slowed down, while steel companies with relatively sufficient stocks have stopped purchasing directly.

Secondly, from the point of view of the miners: Faced with the prudent purchase of iron powder from steel mills, the mindset of miners has diverged. Faced with the current decline in iron powder, the major mines are relatively stable mentality, mainly due to taking into account the overall resources are still tight, low stocks of steel mills, there is still a slight expectation for the post-holiday market, strong willingness to sell goods; and small and medium-sized In order to avoid risks, mines have to withdraw their working capital and have low-cost cargoes. For traders, because they are not optimistic about the late stage of iron powder, they are more likely to stop picking goods.

Again, from the perspective of foreign mineral movements, the price of internal ore has returned to the lower reaches of the external mines. Combined with the end of the rainy season in India, the supply of resources in the later period has increased and it can share some of the supply pressure of domestic ore resources. Since the third quarter, iron ore market prices have been operating with relatively narrow fluctuations and the market has been volatile. It is understood that steel mills are basically unwilling to accept goods, but they are only looking for relatively inexpensive non-mainstream mines in the market for a small amount of supplemental storage. Due to the currently limited total non-mainstream mine production, low grade ore of India is affected by the rainy season. Currently, the ore below 55 grades cannot be shipped out due to excessive water content, resulting in low inventory of low grade ports and the market is more sought after, but according to the survey In mid-October, India's 50-55 grade iron ore can be shipped to China. By the end of October, there will be some relief to the current tight supply of low-grade ore.

To sum up, the iron powder sluggish market is difficult to reverse in the short term, the end of the steel fund pressure at the end of the year, coupled with the immediate acceptance of eleven small holiday, the two sides operate cautiously, mostly wait and see. Therefore, the iron ore market is no longer beautiful. It is difficult to do anything before the holiday and October is still weak.