Iron ore futures rise amid market volatility and declining blast furnace operations
2023.11.08 08:55
© Reuters
In a surprising turn of events, DCE iron ore futures experienced a 1.03% increase, closing at 935 yuan/mt on Wednesday. The rise came as a result of the resurgence of bullish confidence in the market following false real estate news. This surge in prices is expected to be temporary due to the lack of solid positive stimuli and loose market fundamentals.
In addition to the rise in futures, PBF deals were finalized at 963-965 yuan/mt at Shandong port and 985-990 yuan/mt at Tangshan port. These transactions took place against a backdrop of declining blast furnace operations due to internal adjustments, dwindling profits, and staggered production schedules.
The strong mining prices have instilled a fear of high positions among investors, leading to a departure from the market. As a result, the market continues to anticipate volatile mining prices in the coming days. This volatility is likely to impact both the futures and spot markets for iron ore, creating uncertainty for investors and producers alike.
Despite these challenges, the iron ore market has shown resilience in recent times, with bullish confidence returning even amidst false news reports. However, the absence of solid positive stimuli and loose market fundamentals could potentially hinder sustained growth in the future.
The iron ore market will continue to be closely watched by investors and industry stakeholders as it navigates the effects of volatile mining prices, declining blast furnace operations, and ongoing market uncertainty.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
