Amid increase in iron ore prices in China, spot iron lump premium has increased significantly by 10% in week 10. In this week spot iron lump premium has moved up to USD 0.135/dry MT unit, CFR China against previous week’s assessment of USD 0.1225/dry MT unit, CFR China.
Spot iron ore price of Australian (Fe 62%) fines climbed to 8 month high and was seen at USD 52.4/MT, CFR China yesterday (i.e. 04 Mar’16). Global iron ore prices have witnessed strength this week (up by USD 3/MT W-o-W) on the backdrop of firm steel prices in China.
Rebar prices of HRB 400 grade (25 mm) in Beijing, China was recorded at RMB 2,030/MT (USD 311/MT) on 04 Mar’16 up by RMB 50/MT (USD 8/MT) D-o-D.
Some steel mills in Tangshan (China’s major steel producing city in Hebei province) have been reported to lift their output in anticipation of pick up in construction activities. Also some small steel mills who had put their blast furnaces on maintenance are now seen restarting as they are now seen making some profits.
Thus, conditions are looking optimistic compared what they were in 2nd half of 2015.
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