Thanks to better domestic epidemic control and strong domestic iron ore demand, both the consumption of terminal steel mills and the volume of port transactions have shown an increase compared to last year. In terms of specific indicators, the daily consumption of sintered powder ore and the average daily molten iron output of the sample steel mills continued to rebound at a high level. As of the week of 6/12, the daily consumption of sintered powder ore of 64 sample steel mills was 625,100 tons, the average value in the past two months has increased by 0.85% year-on-year, and the average daily hot metal production of 247 steel mills is 2,548,300 tons, a record new highs. At the same time, the port sparse port volume and trading volume are equally heavy. The latest 45 ports have an average daily sparse port volume of 2.963 million tons, the average of the last two months has increased by 4.73% year-on-year last year, while the average volume of port transactions in May has increased by 2.31% year-on-year. The year-on-year increase in June rose to 10.41%. The multi-dimensional indicators all show a significant increase in domestic iron ore demand.

Although the recent increase in iron ore prices has compressed the profits of steel mills, most steel mills are still profitable. According to the data from Steel Union, the proportion of profitable steel mills among 247 sample steel mills is 94.37%, and the profit of some varieties is 300-400 yuan/ Tons, so steel mill purchases are still active, strong domestic demand will continue, and good demand will continue to provide strong support for iron ore prices.

At present, the rebar terminal demand has shown signs of high decline. Due to weather conditions, the rebar inventory in East and South China has slowed down, while the weekly output of rebar has continued to hit a record high. Under the circumstances of better profits, steel mill production is still active, high supply will continue, and supply and demand contradictions Will gradually appear. The falling prices of finished products will drag down iron ore prices.

In summary, the current iron ore inventory is still at a low level, highlighting the strong domestic demand, and the favorable demand end continues to provide strong support for iron ore prices, superimposed by VALE supply disturbance stimulus, it is expected that iron ore prices will maintain a high trend . In the short term, attention should be paid to the pressure caused by the weakened off-season.