Iron ore staged an imbalance between supply and demand, and the exchange issued delivery reminders.

Since its listing, iron ore futures have continued to play an important role in serving the steel industry’s hedging and pricing. In particular, the introduction of overseas traders in 2018 aims to make the structure of domestic and foreign participants more balanced and increase international influence. Since the beginning of this year, the futures market has played a role in hedging risks due to major changes in the structure of the spot supply and demand side. A few days ago, Dalian Commodity Exchange (hereinafter referred to as "DCS") successively issued relevant notices, from adding new deliverables to prompting delivery items, to further maintain the smooth operation of the iron ore futures market and the full play of market functions, and provide in-depth services to the steel industry.

Several analysts told the Securities Daily reporter that China’s iron ore is highly dependent on imports. Due to the global epidemic this year, the global iron ore supply and demand structure has undergone a major change, which has caused short-term supply and demand. In order to be better To meet the domestic delivery demand, DCE added new deliverable minerals under the premise of not affecting the spot supply and demand. At the same time, it reminds the delivery items of the I2009 contract, which reflects the exchange’s consideration of improving delivery convenience, being close to the spot market and service industries .

The contradiction between supply and demand determines the trend of ore prices.

The spot price of iron ore futures has risen recently. The settlement price of the main iron ore futures contract has risen from RMB 741/ton in early July to RMB 848/ton at present, an increase of 14%. Several analysts told the Securities Daily reporter that the main reason for the strong trend of iron ore futures this year is the imbalance between the supply and demand side. Under the influence of the global epidemic, the demand side of iron ore continued to weaken at the beginning of the year and the supply side gradually reduced the supply. Subsequently, as China's steel demand rebounded, the world's major mines gradually resumed supply, but due to the time difference, the current supply has not fully recovered.

On the supply side, Xiang Yiling, a researcher at the Investment and Trading Department of Xianrong Risk Management Company, told the Securities Daily reporter that the current production recovery of mainstream foreign mines will relieve some of the tension on the supply side, but the short-term structural contradiction of Chinese Australian fans Will continue to support the strengthening of iron ore prices.

On the demand side, in the first half of the year, under the premise that global crude steel output fell by 6%, China's crude steel output still maintained a year-on-year growth of 1.4%, and its global share increased from 53% last year to the current 57%, boosting iron ore Stone demand. From a structural point of view, with the upgrading of my country's iron and steel industry structure and the large-scale development of sintering equipment, more fine ore needs to be used, resulting in high prices of some fine ore, thereby driving the entire ore price to a certain extent.