Global iron ore index (Fe 62%) Australian fines remained flat at USD 81/MT, CFR China on 16 Dec’16 against yesterday’s closure with very limited trade activities.
Chinese buyers currently are waiting for prices to retreat below the level of USD 80/MT as coking coal and coke prices have already dropped. This leads to lesser trade activities.
It is to be noted that the seaborne cargoes of high grade ore (Fe 62% Australian fines) is attracting high premium prices, while low grade material continue to remain less favorable for Chinese buyers.
Chinese iron ore and steel futures dropped down. Dalian Commodity Exchange closed at Yuan 591.5 (USD 85/MT), down by Yuan 17 (USD 2.50/MT). On the other hand, Shanghai Rebar Exchange moved down by Yuan 19 (USD 2.70/MT) and currently at Yuan 3,374 (USD 487/MT).
Chinese steel and iron futures relatively moved down as new production restrictions in the two key cities (Wuhan & Tangshan) of Hebei province was announced. Government has issued red alerts over air pollution control and they are asked to cut their emissions by 50% and re-rollers have been ordered to stop production temporary in order to reduce air pollution.
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