The morning market optimism continued, the main iron ore to explore 841 points, the highest level since late March to renew the September contract, but the afternoon market panic spread, funds crazy to leave, the main since the high point fell nearly 20 points, and finally closed down 0.72% to 822.5 yuan/ton, the variety of positions fell 42,000 hands, precipitation funds fell 1.262 billion.
Iron ore futures continued to rise after the increase in policy risk, the market fear of high sentiment, the noon market rumors, the network spread "the National Development and Reform Commission in the afternoon named several iron ore do long institutions", funds panic out, the disk fell sharply. However, there is still no official article released, and the market will follow up and pay attention to the official media. On the macro side, yesterday, the policy side once again exerted its strength, and the executive meeting of The State Council reviewed and adopted the "Several Measures on promoting home Consumption" to further enhance the willingness of residents to consume. Macro expectations once again boosted black prices, iron ore futures continued to rise in the morning.
Iron ore demand side has strong toughness, recent steel mills continue to operate profitable and continue to increase production, hot metal production continues to rise, according to my iron and steel network news, this week 247 steel mills blast furnace operating rate of 84.09%, the same as last week; The profit rate of steel mill is 64.07%, an increase of 3.90 percentage points from the previous quarter; The average daily output of molten iron was 2,468,800 tons, an increase of 10,300 tons from the previous month; In addition, the supply of scrap steel is insufficient, the iron ore inventory of steel mills is absolutely low, and the total iron ore inventory of steel mills in the country fell by 298,500 tons to 85,445,200 tons this week, so there is strong support for iron ore consumption. It should be noted that currently affected by high temperatures in the north and rainy weather in the south, the steel terminal transaction is weak, and the steel table needs to plummet this week, and the finished material price is under pressure. Steel mill profits show a downward trend, iron ore demand growth room is limited.
In terms of inventory, after the Dragon Boat Festival, steel blast furnaces continued to resume production, iron ore spot prices continued to rise, steel port pick-up interest has also increased, iron ore daily throughput increased to 3,083,100 tons, a two-month high, although the volume of foreign mines to the port is at a high level, port iron ore inventory still declined. As of June 30, the country's 45 ports imported iron ore inventory was 127.42 million tons, down 509,800 tons or 0.4% from the previous week. However, the total volume of mainstream mining shipments is at a high level, and continuous high shipments will be reflected in the amount of port arrivals in the later period, and the supply side is weak in price support.
For the future outlook, China Steel futures said that the current iron ore demand side is still high, the supply is stable in the increase, the relative balance of supply and demand, the short-term iron ore demand is high, the basis is large, resulting in large price elasticity, but the reality of the end demand has not improved significantly and the pressure on the material price, the short-term iron ore price is relatively strong, the medium-term iron ore supply and demand pattern is expected to remain unchanged.
