The trading code of iron ore futures is: I.
Main factors affecting iron ore futures prices
1. Cost factor
The cost of iron ore is affected by a series of factors, such as the price of mining equipment, labor costs, the price of water and electricity needed for mining, related taxes and fees, transportation costs, etc., which will all affect the landed cost of iron ore, thus affecting the market price of iron ore.
2. Policy factors
Iron ore is an international commodity, and its price is influenced by many policy factors, such as the import and export policies of producing countries, the tariff policies of importing countries, and the steel industry development policies of consuming countries.
3. Output changes
The increase or decrease of iron ore capacity and output has an impact on the market price. When mining enterprises stop production or reduce production due to equipment maintenance, natural conditions and other reasons, the price of iron ore will also change.
4. International trade price
China is highly dependent on iron ore imports, and international ore prices are closely linked with domestic prices. Changes in the international market price will be transmitted to China, thus affecting the iron ore market price.
5. Downstream demand changes
The market price of iron ore will also fluctuate with the change of downstream demand. When the downstream consumption increases and the supply is insufficient, the market price will rise, and when the downstream consumption weakens and the upstream supply is sufficient, the market price will fall.
6. Substitute product price
When the market price of iron ore is high and the price of substitute products such as scrap steel is relatively low, it will affect the downward price.
7. Product inventory changes
Changes in inventory will also affect the market price of iron ore. For example, if regional stocks increase and traders are willing to ship, prices will go down; Insufficient regional stocks and traders hoarding goods will push up prices.
8. Macroeconomic situation
The healthy and rapid development of macro-economy has a strong supporting and pulling effect on the iron ore market. Macroeconomy mainly affects the demand of downstream industries, and then affects the changes of iron ore market. In other words, macroeconomic performance is a barometer of iron ore market demand and has an important impact on its price changes. When the macro-economy is running well, the demand for steel in construction, automobile manufacturing and other related industries is relatively strong, which will correspondingly drive the demand for iron ore and support its high price operation.
Iron ore futures contract of Dalian Commodity Exchange
Quality standard for iron ore delivery in Dalian Commodity Exchange (F/DCE I00 1-20 13)