Firmer steel prices in China have
lifted iron ore prices to their highest since mid-May. Price offers for
imported iron ore in China were steady on Wednesday, with Australian 62 percent
Newman fines quoted at $182-$184/MT, including freight, and Indian 63.5/63
fines at $189-190/MT.
Shanghai rebar steel futures also
gained for a second day on Wednesday ahead of an expected rise in consumption
over the next two months.The most-traded January rebar contract on the Shanghai
Futures Exchange rose 0.4% to 4,827 yuan/MT
Prices of rebar, used in
construction are expected to sustain gains in September and October, usually
the peak consumption season for steel in China.
“The expectation that
September and October will be a good season is quite high, Steel mills and
traders believe this could be the last chance for more price increases this
year because after October, northern China will be frozen out and there will be
no construction activities”, said Henry Liu, regional head of commodity
research at Mirae Asset Securities in Hong Kong.
However, the flat steel producers
are likely to hit as consumption has been weakened by a slow manufacturing
sector.
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