After a long uptrend followed by prices at a level of USD 62/MT till last week, global iron ore prices are moving down gradually. Currently, prices have touched to a level of USD 59/MT on 29 Aug’16.
Today, seaborne iron ore market remained quiet with very fewer trade activities. Traders lowered their offer prices to tempt sales, yet transactions also remained thin. A major tender which got closed today was of Rio Tinto, who sold around 170,000 MT Fe 61% Pilbara fines at USD 58.58/MT, CFR China.
Suspension of construction activity in Hangzhou province due to upcoming G20 summit in early September has limited the demand of steel in south China which is pressurizing iron ore market.
According to one of the market participants “ Traders are cautious about the global volatile market and they are keeping iron ore inventories at a lower end. Market participants are waiting for a clear price trend to emerge.”
It is to be noted that steel demand typically weakens in China starting November i.e. starting Winter season as construction activities slow down in the northern region. The slower demand for steel will definitely impact iron ore prices further.
Spot billet prices in Tangshan down by RMB 20/MT during the weekend and were stable today at RMB 2,370/MT (USD 359/MT). Spot rebar price in Beijing remained unchanged.
Iron ore inventories at major Chinese ports are registered at 107.4 MnT (as on 26 Aug’16), which was marginally down by 108 MnT as on 19 Aug’16.
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