Global iron ore prices moved up sharply by USD 3.2/MT in a day on strong Chinese steel futures and higher spot steel prices. Prices have touched to the level of USD 83/MT, CFR China on 12 Dec’16.
In addition, the Chinese government news to shut down illegal induction furnaces in Tangshan with over 10 MnT/year capacity has boosted spot billet prices in Tangshan.
Spot billet prices (Q325) for size 150X 150 mm in Tangshan is currently at RMB 3,150/MT (USD 456/MT), including VAT of 17%, which were at USD 414/MT last week.
China’s benchmark futures contracts for steel products and iron ore have posted a gain of 2-3.6% for the day, while spot rebar and HRC prices jumped RMB 150-270/MT(USD 22-39/MT).
It is noted that Chinese port stocks of high grade ore gained around RMB 25/MT (USD 3.6/MT) as trading activity picked up.
“Higher-grade iron ore is still easier to sell than lower-grade materials, as mills are seeing good profit margins at the moment,” a trader in Tianjin said.
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