Global iron ore prices are sinking down and recorded at USD 45.8/MT, CFR China on 18 Nov’15. Prices were seen to a level of USD 44-45/MT, CFR China in the month of Jul’15 ,recorded at a new 10 years low. Currently, prices are declining on account of persistent fall in Chinese steel prices as it also hit record low.
Shrinking steel demand and consumption in China hit Chinese steel prices, leading to prolonged worries for steelmakers. There is hardly any Chinese steel mill, which is earning profit now, so demand may remain weak throughout the year end.
China’s fading steel production is a major drawback for declining iron ore prices. As we already reported earlier, China’s steel exports in October fell to 9.03 MnT, while major miners continue to ramp up their iron ore production and continue to add more quantity of iron ore in the market. As a result of oversupply, prices are still under pressure.
More blast furnaces in China are likely to close by the year end; adding more pressure on iron ore prices. Few market analysts anticipate that if the situation persists, global iron ore prices will touch to a level of USD 40-42/MT by the end of Mar’16.
Apparently, steel consumption in China, the world’s largest producer and consumer, fell by 5.7% to 590.7 MnT in 1st 10 months of the year, according to the China Iron and Steel Association (CISA).
Leave a Reply