Global iron ore prices have witnessed a growth of USD 2/MT in a day and currently assessed at USD 80/MT, CFR China on 07 Dec’16. Rising steel prices have pushed iron ore prices to bounce back to USD 80/MT level.
Rise in steel prices was largely due to announcement made by Hebei government for investigation of several induction furnaces in the province following the suspension of production at few furnaces in Jiangsu province. An inspection was conducted on 06 Dec’16 in order to prevent the production of sub-standard quality products.
This announcement made ferrous future surge for both iron ore and steel. Shanghai Future Exchange rose by USD 6.80/MT and Dalian Commodity Exchange rose by USD 2.10/MT in a day.
Spot billet prices rose by Yuan 70 (USD 10/MT) and presently at Yuan 2,870/MT (USD 416/MT).
Rising port iron ore prices led to increase in buying activities which also helped by higher steel prices. Increase buying activities in China has also strengthened premium for seaborne cargoes.
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