Global iron ore prices witnessed at USD 76/MT, CFR China as on 23 Dec’16. Prices moved down by USD 2/MT in a day as seaborne iron ore market remained weak due to upcoming holidays and weak steel prices.
Iron ore demand remains dull due to restrictions on using sinters and production cut in the country’s biggest steelmaking hub. In addition, currently demand is also affected by winter season (smog) which has slowed down the construction activities in China.
Although mills have sufficient quantity of raw material for production during upcoming holidays, they are unwilling to make any new purchases as global prices are uncertain.
Spot iron ore prices touched the level of 83/MT, CFR China last month also iron ore futures rallied and reached to a 2-year high.
Today, iron ore and steel futures were down. Dalian Commodity Exchange is currently at Yuan 547 (USD79/MT), down by Yuan 4 (USD 0.58/MT). On the other hand, Shanghai Futures Exchange is currently at Yuan 2,996 (USD 431/MT), down by Yuan 61 (USD 8.78/MT)
against yesterday’s closure.
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