Global iron ore prices are assessed at USD 60.5/ MT, CFR China on 01 Aug’16. Prices have gained momentum and are at 3-months high. Earlier, prices at such level were last seen at the end of Apr’16.
Prices are up as steel prices are strengthening. There is a tight supply of steel in China as the flood in Northern China ( the area where majority of the steel is produced) has disrupted transportation routes. In addition, environmental inspections in Beijing area has also drifted steel prices.
The rise in steel prices has supported iron ore prices also to move up further.
Spot steel prices have gained momentum
Spot billet prices in Tangshan rose by RMB 30/MT. Current prices for spot billet are at RMB 2,120/MT (USD 326/MT).
Shanghai rebar prices are 2-week high. Current prices for Shanghai rebar are RMB 2,330/MT (USD 358/MT), up by RMB 90/MT (USD 14/MT) W-o-W. Alongside, today, spot rebar prices in Beijing rose by RMB 15/MT (USD 2.3/MT).
Chinese iron ore port stocks hit highest in 2016
Iron ore stock at major ports has recorded highest at 106 MnT. Iron ore prices have climbed even as stockpiles at ports in China have expanded, and low-cost producers continue to add supply.
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