Amidst the new year holidays, Chinese market remained closed for a week from 15th Feb to 21st Feb and reopened today on 22nd Feb’18. The lag in the market activities, led China spot iron ore prices remain stable during the week. The spot iron ore prices for Fe 62% fines witnessed at around USD 78.2/MT, CFR China today against prevous closing of USD 78.3/MT, CFR China.
The steel demand before New Year recorded low amid heavy snow and winters resulting in lesser construction activities. The seaborne iron ore prices had witnessed increase before the new year holidays amidst rising restocking activities by mills to support production post holidays.
Seaborne iron ore prices recorded range bound after Chinese New Year holiday, owing to low interest from steel makers and lack of trading activities. Numerous mills had stocked enough material to continue production after the holidays, leading to dull trading on first day after Chinese New Year Break.
However, after the retrieval of buyers the prices are expected to increase due to restocking again. The month of March which marks extreme construction activities in China is to bring forth high material demand and resume iron ore buying interest by traders.
Domestic billet prices and Rebar futures fall
The most active rebar on Shanghai Futures Exchange dropped today by around USD 10-11 to its weakest since mid-Jan at RMB 3,841/MT.
Domestic billet prices in Tangshan for 150*150 mm moved down today to Yuan 3,710/MT (including 17% VAT) against yesterday’s closing of Yuan 3,740/MT (including 17% VAT).
Leave a Reply