Chinese spot Iron ore prices remain subdued over fall in steel futures and increasing Iron ore stock at Chinese ports. Spot prices look to be in range of USD 110-130/MT CFR for grade Fe 62%. Currently, prices have stabilized; prices will neither go down sharply nor go up, say Chinese traders.
Speaking to a Chinese trader, SteelMint assessed that current prices for Fe 54% is hovering at USD 84-85/MT, however buying is seen lower by few dollars. They also highlighted that Chinese mills are not very keen for Indian Pellet at the moment as they have competitive offers from Brazil & Ukraine.
“Today China spot price for 63.5/63 at USD 116/MT level, it tends to stabilize, I guess Chinese Iron ore price might be fluctuating in range of USD 110-130/MT for 62% grade, now at a balance level. Low grade ore having Fe 54%, buying interest is seen below USD 83/MT & USD 87/MT for 55% grade; however offers are slightly higher than current levels. Markets are very slow, sellers not fared with buyers”, said Mr. Li, a Chinese importer based in Shanghai.
On stricter pollution norms in China, traders believe that it had little impact till now as mills are more concerned over margins.
“Some said factories would turn to high grade ore due to emission norms, government hopes so as well, but we could not see it worked so far, factories care more on costs, it might happen in future to consider use high grade ore”, said another trader based in Rizhao port, China.
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