Monday, June 13,
Spot iron ore prices in China remain steady on Monday. Indian exporters quote Fe 63.5/63 at $179/MT i.e. same as Friday.
But the power shortages are expected to restrict the steel output in China. “Amid concerns on inflation and tightening monetary policy, power shortages are emerging as an additional challenge in China,” Deutsche Bank said in a note.
Most of the cities in the country are experiencing the worst power shortage in at least seven years. So far no production cuts or shutdowns in heavy industries has been reported. But if the power shortages persist and gets worse, then we can see some production disruption, said analysts.
In the forward swap market, prices mostly fell on expectations that power shortages in China could depress the steel output and therefore the prices.
The Singapore Exchange-cleared June contract fell by $1.00 to reach $172.50/MT, While the July contract dropped by $1.58 to reach $171.50
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