Chinese spot iron ore prices dropped down to USD 113.75/MT, CFR China, as on 25th June’19. The prices fell by USD 2.55/MT D-o-D as against USD 116.3/MT, CFR China witnessed on 24th June’19. The prices have dropped down against hovering at five years high levels in recent weeks.
The global iron ore prices have depicted fall during the week amidst easing supply from Vale and decreasing demand from Chinese mills. On 19th June’19, Vale- world’s largest iron ore miner announced the resumption at its Brucutu mines within 72 hours. As per sources, the mine resumed operations at minimized capacity towards last weekend and will soon restart operation at full capacity.
Towards end of last week, Tangshan govt announces production cut for sintering, converters and lime kilns by 20-50% till Aug 1 on account of pollution norms. Tangshan is the largest steel producing region in China. It is expected that on reduced production, steel mills will have higher iron ore inventories following which global iron ore miners turned active to offload cargoes.
Dalian iron ore future subdued during the week
Dalian iron ore future for Sept’19 witnessed significant fall to 789 yuan/MT as against record high levels of 837 yuan/MT witnessed on 20th June.
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