Global iron ore prices are assessed at USD 38.5/MT, CFR China on 17 Dec’15. Last week, prices touched to a level of an all time low at USD 37/MT. However currently, prices have gained some momentum, but still lies below USD 40/MT, CFR China.
Spot steel prices in China have gained some recovery as there is restocking of raw material by Chinese steel mills. The mills will be closed for next week on account of Christmas Eve. Market Analysts believe recovery in spot steel prices is for short time as there is no improvement in Chinese infrastructure demand.
Shanghai rebar prices have moved up by USD 2/MT within a week. On 15 Dec’15, prices were assessed at USD 260/MT and USD 262/MT on 17 Dec’15.
Shrinking steel demand in China and the global glut have forced prices to touch the level of USD 37/MT. In addition, the upcoming projects by major iron ore producers like Vale and Rio Tinto are making situation worse.
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