Spot iron ore Fe 62% fines price increased by $1 to $178.45/t CFR China as expectations of tight steel supply and strong steel margins gained traction. Demand for iron ore rose on the back of steel margin recovery and a tighter steel market outlook for CY21. The Tangshan government’s plans to close seven smaller blast furnaces in Mar and reduce emission by 40% in CY21 firmed up market expectations of a reduction in Chinese crude steel output for the whole year. The potential tightness ensued in steel supply and therefore higher steel margins created more headroom for iron ore prices, according to sources.
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