Global iron ore prices are witnessed at USD 55.9/MT on 11 Apr’16. Prices remained almost stable at USD 54/MT, CFR China throughout last week.
Prices are up by USD 2/MT in a day time as steel prices lifted. Upon increased steel demand in China, steel supply still remains tight as the steel production pace had been slow down due to tight financial liquidity.
Global iron ore prices moves up on following grounds:
Upsurge in Chinese domestic billet offers
Chinese steel prices surged across China upon strong seasonal demand and increasing low billet inventories. Chinese domestic billet offers were upsurged by RMB 90/MT (USD 14/MT) to RMB 2,170/MT (USD 334/MT) against last day closing on 8 Apr’16 at RMB 2,080/MT (USD 320/MT).
Meanwhile, Spot rebar prices in Beijing were also up by RMB 200/MT (USD 30/MT), supported iron ore prices to move up over the weekend.
Upcoming International Horticulture Exposition
The international horticulture exposition in Tangshan city which is scheduled from April 29th to 16 Oct. has resulted in temporary suspension of steel production in China’s top steel producing province, Hebei. The suspension will be in efforts to curb air pollution during the event. Upon this, steel prices are gaining tremendously in China.
According to China Iron & Steel Association (CISA), China’s steel consumption will decline further in 2016 to 646 MnT from 673 MnT in 2015.China has over the past few years been exporting much of its surplus requirements, but as its trade countries are much taking actions by imposing various duties and regulations, steel exports are likely to drop down by the end of this year.
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