Exactly after a month drifting in 50’s the global iron ore prices have rose to USD 60/MT adding 3 US dollars to its previous close. On May 25th, 2017 the prices for the important steel making raw material have started falling below USD 60/MT at USD 59/MT Fe (62%), CFR China.
The flickering prices have seen iron ore priced at as low as USD 53/MT on Jun 13th, 2017. Yesterday’s upgrade is attributed to the buyers that have planned to replenish the stocks as the margins are higher currently for the steel makers. The mills want to continue its production further to profit from the trend.
It is to be noted that to cut down the manufacturing of low grade rebar is a part of China‘s overall plan and policy along with keeping a tab on induction furnaces.
The decision should benefit the other producers by and large but the high level of inventory at Chinese ports cannot be ignored. The hike cannot be sampled for any further increase in prices for the time being.
Leave a Reply