Friday, May 06,
Spot iron ore prices in China remain steady and steel mills show reluctance to make bigger purchases.*
Fe 63.5/63 of Indian fines are being offered at around $188-189/MT.
According to traders based in China, “Transaction have been very weak because of the market rumors about power cuts”
Electricity use reaches its peak in summers and steel mills are likely to suffer from the power cuts as regulators seek to guarantee supplies to residential users.
Traders in Shandong province say, “Few steel mills in China have already restricted their power consumption. And rests appear to be cutting costs by switching to cheaper, low-grade ore. Meanwhile, shipments from India’s Goa port, which mainly loads low-grade ores, will be affected in the coming monsoon season starting in early May.”
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