Global iron ore prices are assessed at USD 44/MT CFR China on 03 Feb’16. Shanghai rebar prices also gained and are assessed at USD 280/MT. Prices are up as there is increase in steel prices.
Prices have gained around USD 5/MT since Jan’16. This is because of upcoming New Year Holidays in China. Chinese steel market will be closed between 07 Feb-13 Feb’16 next week. Upon which, all the Chinese steel mills are restocking the material before holidays.
Shanghai rebar prices also found support after a long gap. Currently, they are assessed at USD 280/MT, at around four month high.
Market analysts anticipates that steel prices may go up and iron ore prices may reach to a level of USD 50/MT again. However, the prices at USD 50/MT was last seen in the month of Oct’15, after which due to global glut prices are continuously declining and even reached to a point of USD 37/MT.
Meanwhile, Gina’s Rinehart’s Roy Hill is again ready to ship its third iron ore shipment very soon. First and second shipment was shipped in Dec’15.
It is believed that this increase in price is temporary and may not last for long time. As we already know, due to increase in production by major iron ore producers, will result in oversupply of the market. Also, due to slow Chinese economic growth as well as demand, global iron ore prices will remain under pressure and may touch to a level of USD 30-35/MT in the coming term.
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