Global iron ore prices are assessed at USD 80/MT, CFR China on 28 Nov’16. Prices moved up as steel prices rose further .
The prices rally also corresponded with the news that Chinese policymakers had managed to remove 88 MnT of steel making capacity across the country in the recent nine months (Jan – Sep’16), close to double its initial target of 45 MnT for the year. That news helped to spur gains in steel prices, along with its raw ingredients, including iron ore.
China’s aim to trim surplus steel capacity coupled with expectations of more robust demand for finished products in 2017, further increase the ferrous market sentiments.
Chinese steel mills continue to chase high grade fines, thereby create huge demand for high grade iron ore. Low –grade iron ore continuous to be the less preferred ore in China.
Meanwhile, spot billet prices in Tangshan rose by RMB 70/MT and currently assessed at RMB 2,870/MT (USD 422/MT). In addition, spot rebar prices also rose by RMB 30/MT today.
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