© Reuters Regulatory voice again, iron ore prices fall slightly from high levels, industry says it has not yet had an impact on market supply and demand
Financial Associated Press, March 7th (Reporter Zhang Liangde)After the National Development and Reform Commission once again made a stern statement, the price fell from a high level yesterday, and the daily price of iron ore futures fell by as much as 3%. A reporter from the Financial Associated Press learned that the fall in iron ore prices has not had a major impact on market supply and demand for the time being, and the actual demand still needs to consider the transmission of downstream finished products.
Recently, the Price Monitoring Center of the National Development and Reform Commission organized some market institutions and industry experts to hold a meeting. Experts believe that in the absence of major changes in the fundamentals of supply and demand, the price of iron ore has risen sharply in the short term, showing obvious signs of speculation. It is also suggested that relevant departments continue to strengthen the joint supervision of the spot futures market, and severely crack down on illegal activities such as fabricating and disseminating price increase information, hoarding, and driving up prices.
As of the close of the afternoon yesterday, the main domestic iron ore futures contract closed at 897 yuan/ton, a decrease of 2.13%, while the night market rebounded slightly and stood above 900 yuan/ton again. Related stock prices also fell. Hainan Mining (601969.SH) fell 4.96%, Jinling Mining (000655.SZ) fell 2.29%, US stocks BHP Billiton fell 2.75%, Rio Tinto fell 3.29%, and Vale fell 2.51%.
ANZ believes that China’s “relatively modest” 5% GDP growth target is not good for Australian exports, as it suggests that China is unlikely to implement large-scale stimulus measures.
The drop in iron ore prices has not had a major impact on market supply and demand for the time being. The staff of Dazhong Mining (SZ:) told the reporter of the Financial Associated Press: “The iron ore customer group around the company is relatively stable, and the production and sales maintain a normal balance.”
Liu Xiaoming, manager of Ningbo Chunjia International Trade Co., Ltd., told reporters from the Financial Associated Press: “If the price of iron ore continues to rise, the pace of steel mills’ procurement will slow down. Now this price correction is also an opportunity for steel mills to replenish their warehouses.”
“There is no problem with the supply side of iron ore at present, and there are no weather disturbance factors this year. This year’s shipment volume has increased slightly compared with last year.” Zhu Shaonan, an industry analyst at Soochow Futures, told the Financial Associated Press.
For the market outlook, Zhu Shaonan believes that the current actual demand for iron ore still needs to consider the transmission of downstream finished products. The current time is the time node for the transition from the traditional off-season to the peak season, but it is still difficult to predict the specific demand situation, and we must pay attention to downstream demand Will it be falsified.
(Editor Liu Yan)
