China spot iron prices have been fallen down by USD3/MT today (9th Mar’18) to USD 70/MT, CFR China against the previous closing of USD 73/MT, CFR China. It has declined by USD 3/MT D-o-D. On 7th Mar’18, it was recorded USD 75/MT, CFR China. In last three days, prices have declined by USD 5/MT.
On weekly basis, iron ore prices came down by 13% against USD 79/MT, CFR China last week closing.
Spot iron ore prices have hit almost 3 months low as these levels were last seen around 1st week of Dec’17.
Factors behind steep decline in iron ore prices:
1. A decline in steel and ferrous futures -: As per reports, Chinese steel futures slumped to lowest since Nov amid announcements of US import tariffs on steel imports and increased steel inventories signaling a dull demand. Iron Ore futures fell by about 5% against yesterday.
2.Increased iron ore stocks at the Chinese major ports-: High availability of material at major Chinese ports is affecting the iron ore prices, with mills bidding at lower prices. The iron ore inventory at major Chinese ports increased by around 6mnT in a month, it stood 152.58 MnT towards the beginning of Feb’18 and witnessed at 158.58 MnT as on 9th Mar’18.
3. Fall in Chinese domestic steel prices -: Domestic rebar prices in eastern China has fallen by about RMB 200/MT since the beginning of this week to RMB 3,800-3,860/MT (ex-works). Similarly, domestic HRC prices in China have come down by RMB 190/MT since this week’s beginning.
Spot billet (150*150mm) prices in Tangshan stood at RMB 3,670/MT (including 17% VAT) towards the week close against RMB 3,800/MT at the beginning of this week.
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