Chinese spot iron ore prices increased to USD 93.65/MT, CFR China, as on 23rd Sep’19. The prices picked up by USD 2.05/MT, as against USD 91.6/MT, CFR China assessed towards last weekend. The prices have picked up amid stricter pollution controls imposed by the Tangshan government.
As per the government of Tangshan and newly revised policy for production curbs:
1. Long route steel making: For those falling in class sintering machines, pelleting machines and lime kiln must stop, with implementation based on production lines. The operation of Blast furnace will limit by 50% and above. Besides, coking chamber of 6m or above should be prolonged to 28 hours while those below 6m (including) will extend to 36 hours.
2. For Independent Kilns: For Kiln falling in Class B, Kiln will be banked and for Kiln falling in Class C will be shut down.
3. Short route steel making: EAF steelmaking, independent sintering, pelleting, rolling will be stopped.
As per reports, today there are 30 blast furnaces in Tangshan which have implemented shutdown with a volume of 28,754 MT affecting daily hot metal output of 160,000 MT. Blast furnace utilization rate will further fall as mills are working on production limit measures.
Hike in spot iron ore fines price is also attributed to end-users restocking inventory before the October national holidays starting from 1st Oct’19 amid tightening supply at the ports.
As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports fell to 124.1MnT as on 19th Sept as compared to 124.9 MnT a week ago.
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