The difference observed in the global iron ore prices can be attributed to the changes in Chinese steel prices, no fundamental reasons could be traced for a marginal variance.
There are sentiments that the anticipated change in policy over the pollution control norms may pull down the production and will reduce the supply; the same have pushed the demand upward to keep the prices of the material afloat.
Compared with previous day the market for the spot steel was slightly down. Spot billet prices in Tangshan lost RMB 90/t today and spot rebar prices in Beijing went down RMB 50/t.
In China, port stock prices lost around RMB 5/wmt, though cargoes in Tangshan ports were still trading at a premium compared to other regions. The most active DCE iron ore futures contract lost 0.69%, while SHFE rebar went down 1.78%.
Trading activity slowed down at Chinese ports despite traders lowering their offers by 10-15 Yuan (USD 1.50-2.20/MT).
Billet
Billet was traded at 3,330 Yuan (USD 484/MT) including VAT in Tangshan, with no change from the day earlier.
The price of billet in China’s Tangshan region also fell 90 Yuan (USD 13/MT) to 3,240 Yuan (USD 471/MT) though most participants consider the drop as a correction in view of rapid increases over the preceding two days.
Shanghai Futures Exchange
The most-traded May rebar futures contract closed at 3,525 Yuan (USD 512/MT) down 50 Yuan (USD 7.30/MT) change from the day earlier.
China’s spot rebar prices fall after three-day surge
East China, domestic, grade III 16-25mm rebar, traded at 3,600-3,640 Yuan (USD 523-529/MT) including VAT.
North China, domestic, grade III 16-25mm rebar, traded at 3,580-3,620 Yuan (USD 520-526/MT) per including VAT.
China, base export prices for 16-32mm chromium-added, rebar, assessed at (USD 450-460/MT) fob on an actual weight basis, March shipments.
China’s spot rebar prices retreated on February 22 after consecutive days of increases since last Friday.
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