Global iron ore prices are assessed at USD 83/MT, CFR China on 24 Jan’17. Prices have moved up sharply by USD 3/MT in first three days of this week owing to rise in ferrous futures.
Ferrous futures have gained despite China announces steel output for 2016 which was 1.2% higher at 808.4 MnT and increased inventory level in early Jan’17.
The futures market rebounded today with most ferrous contracts surging. The Dalian Commodity Exchange -iron ore contract jumped 6.22% and currently at 649 Yuan (USD 94), while Shanghai Rebar Futures-rebar futures gained 3.72%, and currently at 3,309 Yuan (USD 482). This lent support to the spot iron ore market throughout the day.
Iron ore buying activities continue to pick up at Chinese ports before onset of Chinese New Year Holiday, resulted in surge in prices.
Spot steel prices in China were stable today. Tangshan billet prices remained at 2,810 Yuan (USD 409/MT), unchanged W-o-W.
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