While shipments increased sharply and port inventories rebounded, domestic demand was constrained by environmental restrictions. Iron ore prices have been falling since February of this year. Analysts believe that, although the supply has pressure, but the steel plant profits support the ore price, the iron ore market generally maintained a smooth operation, the exchange rate continues to depreciate the value of the Renminbi denominated ore prices, which is expected to remain in the short term.

 

Since February 26, 2018, the main contract of iron ore futures has dropped by 85 yuan / ton, and the total decline has reached 15.51%. Yesterday, a slight drop of 0.43%, 463 yuan / ton. The main 1809 contract was reduced from 136 thousand and 200 to 1 million 191 thousand and 300.

 

According to customs data, the total import quantity of iron ore and its concentrate in China reached 447 million 454 thousand tons in the 1-5 month of 2018, which was 0.7% increase compared with the same period last year, and the increase was narrowed. And the storage of Hong Kong has increased again, and the port pressure is more serious. According to the statistics of the relevant agencies, the stock of iron ore in 45 major ports in the country was 154 million 884 thousand and 100 tons by the end of June, an increase of 9 million 494 thousand and 100 tons from 145 million 390 thousand tons in the same period last year, with a year-on-year increase of 6.5% last year.

 

Recently, with the recovery of profits of steel mills and the resumption of production by enterprises with limited production in some areas, the demand for iron ore has picked up.

 

"In the second half of the year, considering that the environmental policy will continue to be strictly implemented, and the government's sustainable capacity policy, the pattern of iron ore supply will continue." Related parties believe that the possibility of iron ore continuation of a wide range of shocks.

 

To investigate the reasons, the relevant personnel said, first of all, from the four major mines in 2018 production plan, still maintain an increase, so the supply pressure of iron ore in the second half of the second half of 2018 is still not reduced, this will make the iron ore port stock pressure still exist. Second, if the steel mill continues to maintain high profits, it will stimulate the steel plant to increase production and increase the demand for iron ore, and the price of steel will remain strong, and the price of iron ore as the raw material will also be greatly supported. While environmental protection is not conducive to the increase in iron ore prices, but under the support of steel prices, iron ore price downward space is also limited.