Global iron ore prices are assessed at USD 39.3/MT, CFR China on 13 Jan’16. Prices are again on declining trend.
There are ongoing couple of reasons impacting prices to move downwards. Those were China’s slow economic growth, weak steel demand and consumption. In addition, recently released China imports figures in 2015 have also affected prices a bit.
On 13 Jan’16, Rio Tinto, 3rd largest iron ore producer sold 190,000 MT Fe 61% Pilbera fines at USD 39.3/MT CFR China thorough its tender.
According to Chinese customs data, China, world’s top buyer, imported 953 MnT iron ore in 2015. In 2015, the country records highest imports in terms of iron ore imports as well as steel exports.
Generally, China’s iron ore imports are usually strong in December as major iron ore producers like Australia and Brazil try to meet their annual shipments targets.
Talking about the demand, currently steel demand is shrinking. Also, strict environmental measures are likely to shut more mills in the coming term. There is strong believe that in the coming time, a global glut is about to occur. Major miners continue to pump more and more of low cost iron ore in China.
On the other hand, Shanghai rebar again hits all time low. Prices are hovering at USD 267/MT. Amid weak steel demand and consumption, China steel exports surged at around 112.4 MnT in 2015. Exports records all time high too.
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