Wednesday, September 29,
The series of holidays starting from 22nd September and National Holidays in first week of October in China has put the market in slumber. Transactions are few. However, it doesn’t seem unusual in the backdrop of truncated steel production in the aftermath of power cuts to enforce emission norms.
This receding commenced from the end of August when the regional Governments got hyperactive cutting power supply to manufacturing units. However it has been noticed that the decline has been gradual over the last fortnight. In fact the prices have remain dormant for the past 1 week at levels of $146-148/MT CNF at main Chinese port for Fe 63.5/63% cargo of Indian fines.
Despite news of production revival in Wu’an region of Hebei Province there is little chance that transactions would resume significantly since traders have opted for caution due to the uncertainty and holidays. It will be only after the National holidays that some change in dynamics can be contemplated.
Leave a Reply