Chinese Steel Mills remain cautious on buying iron ore, as steel demand remains weak

Friday, October 15,

Iron ore prices rose for an eight consecutive session on Friday to their highest in nearly five months, marking their longest winning streak since March on strong Chinese demand.

Chinese steelmakers have resumed buying supplies as government-enforced curbs on production eased and mills stockpile iron ore ahead of winter.

But the surge in iron ore prices coincides with falling steel rebar futures in Shanghai SRBc8, suggesting market players may soon put the brakes on the iron ore rally given the hazy outlook for steel demand, with China bent on taming its red-hot property market.

Currently iron ore spot prices in China are hovering at $158-159/Mt. “There is only selective buying in the market.

Buyers are cautious procuring iron ore at this moment looking at weak demand in China.” said an exporter based in Western India.