The average imported iron ore margin fell from 0.82 yuan/mt to -1.27 yuan/mt in the latest period, weighed down by lower port spot prices and higher ocean freight.
On the demand side, SMM survey data showed average daily hot metal output at 2.3629 million mt on November 11, up 5,600 mt week-on-week. CISA data showed finished steel inventories at its key member mills stood at 14.9 million mt in late October, down 2.32 million mt, or 13.5%, from the previous ten-day period.
A slight rise in hot metal output and steel destocking provided some support to iron ore prices. However, mill inquiries remained thin, and new capacity coming on stream at Simandou weighed on market expectations, leaving limited drivers in either direction. Iron ore prices are likely to trade in a narrow range in the near term. Despite a modest rise in freight, the imported iron ore margin is expected to fluctuate narrowly around breakeven as supply and demand remain broadly stable.
