China’s iron ore prices have gradually moved southward on the growing market pessimism when the domestic steel consumption has been decent but not as robust as expected. Domestic steel prices have felt the pressure, with the country’s rebar price hitting a 2.5-month low. In tandem, Mysteel’s SEADEX 62%, Fe Australian Fines eased to $116.7/dmt CFR Qingdao on September 22, down $12.7/dmt on week, or a low since August 3.
In the near term, demand for iron ore may wane, as the Chinese steel mills’ appetite may be curtailed with frequent restrictions issued by the authorities especially in Tangshan to control pollution. Moreover, iron ore inventories at many Chinese ports have been recovering steadily and slowly, after the congestion has been dealt with.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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