More than a week long spell of price rise was halted in Chinese market bringing global iron ore prices down for the day. Traders are varying the sustainability of the further continuous rise after recording high prices in years. The sentiments recorded the concerns over the piled up stocks of the imported material at the Chinese ports at its highest since 2004.
The doubts influenced the iron ore futures market to turn downward lowering the material prices at USD 91/MT today.
Though the prices sled down no significant movement was recorded in the iron ore spot market. However little higher number of trades were recorded compared to the day earlier. In China, port stock prices lost around RMB 5-10/wmt.
The most active DCE iron ore futures contract lost 2.21%, while SHFE rebar went down 1.78%. Spot billet prices in Tangshan gained RMB 30-40/t today and spot rebar prices in Beijing rose RMB 35/t.
Due to weak billet, futures markets spot rebar prices in China further downed. February 23 seen spot rebar prices decline again in China as the futures and billet markets weakened further.
There were pessimistic feelings due to the losses in billet and futures markets during the day that affected rebar prices. However handsome profits were made by the sellers those have piled up their inventories before the Chinese New Year Holiday at low buying prices. Sellers are trying to cash on the price boom before it declines further.
Conversely buyers have postponed the purchases hoping the lower pricing in future looking at the excess of inventories. As there is a continuous volume cut in sales numbers as prices too went down, there are higher chances for further price cuts looking at stocks.
Billet
Billet was being traded at 3,280 Yuan (USD 477/MT) USD including VAT in Tangshan. The price had fallen 90 Yuan (USD 13/MT) USD late on Wednesday before regaining 40 Yuan (USD 5.80/MT) USD.
Shanghai Futures Exchange
The most-traded May rebar futures contract closed at 3,483 Yuan (USD 506/MT) USD down 42 Yuan (USD 6.10/MT) USD from Wednesday’s closing price.
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