China: Spot Iron Ore Prices fall further; Baosteel reduces Price

Spot Iron ore prices in seaborne market continue to fall owing to lower demand and increasing supply from global miners.

Iron ore prices have corrected further by USD 0.5-1/MT after China’s 2^nd largest steelmaker, Baoshan Iron & Steel (Baosteel) announced to reduce its main product prices for October delivery by RMB 100/MT (USD 16.3/MT).

October is normally a peak steel consumption period, but Baosteel said that it corrects the prices of both hot- and cold-rolled steel for the month. However, Plates prices remain unchanged.

Baosteel’s pricing moves normally set the tone for the industry as a whole, and the latest adjustment follows a persistent slump in steel product prices in China, the world’s biggest steel market, which has been hit by weak demand and chronic oversupply problems.

All leading mine owners are continuously increasing production – the world is experiencing price war.

World Leading Mines’ Production (MnT)

Source: SteelMint Research
* For reference purpose