The Import Iron ore market witnesses no change in prices, due to sluggish demand.
Mills are playing very carefully, as they are not so sure about the direction of steel market, they adopted the strategy of wait and watch the trend.
They believed that there was no urgency of procuring Iron ore, as they were aware about ample of Iron ore availability with the suppliers, which they could purchase anytime, when they require.
Billet prices remain unchanged at RMB 3000/ MT, the traders were inactive while quoting. The trader were unwilling to sell at under price, as this would not help them recover the high cost incurred by them, and they didn’t even had the pressure of stocks.
Over supply hints the fall in Iron ore prices in short term. FMG the ever biggest cargo with 962 MT of low grade Iron ore is soon arriving at China’s port. The prices of Iron ore are expected to falls in future looking after the ample availability, in comparison to the sluggish demand.
China’s daily crude steel output stood at 2.0293 MnT in November, down by 3.34% from October, the lowest level seen this year till date, reported by National Bureau of Statistics of China.
Reasons that could justify the down trend were, some of the small and medium sized mills had cut down their production as they were in great scrutiny after the Annual meeting, because of the some environmental issues. Secondly, many of the mills have in North China have parallelly slow down their production as the weather is getting colder, because the demand for steel in construction sharply declines during the winter.
USD 1= RMB 6.1114
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