With the arrival of the first trading day after the holiday, the iron ore market ushered in a "good start", with spot **common**, and trading activity increased. Despite a slight decline in global shipments and the continued accumulation of port and mill inventories, hot metal production continues to recover, bringing positive signals to the market.
Mainstream iron ore varieties such as PB powder, Jinbuba powder and super special powder in Qingdao Port have all increased, with an increase of 10-20 yuan. The spot trading volume of ports across the country rose sharply month-on-month, reaching 540,000 tons, indicating that the market's willingness to trade has gradually increased. Although the enthusiasm of steel mills is not high and there are fewer inquiries, the enthusiasm of the first business is acceptable, and the overall performance of the market is stable.
In terms of ocean freight costs, there are some rates from Brazil to China and from Western Australia to China, which may put some pressure on the import cost of iron ore. However, given the continued recovery in hot metal production, this pressure may be alleviated to some extent. According to MySteel statistics, the total inventory of imported iron ore in China's 45 ports increased by 4 percent from last Monday2%, and the total inventory of 47 ports increased by 37%。Despite the increase in inventories, the average daily production of molten iron also reached 224560,000 tons, an increase of 0480,000 tons, showing a positive trend of production activities.
It is worth noting that Jiujiang Pinggang Iron and Steel plans to overhaul the blast furnace in the near future, which is expected to have a certain impact on the output of molten iron and building materials. This news may bring changes to the market supply and demand pattern, and investors need to pay close attention to the resumption of production and actual demand of steel mills after the holiday.
Overall, the iron ore market after the holiday showed a strong operation trend. Despite a slight decline in global shipments and the continued accumulation of port inventories and steel mill inventories, the continued recovery of hot metal production has brought positive signals to the market. In the future, the market will pay close attention to the resumption of production and the actual demand of steel mills after the holiday to judge the market trend. At the same time, investors also need to pay attention to the global economic situation and policy changes to deal with potential market risks.