Global iron ore prices are witnessed at $77/MT, CFR China on 24 Nov’16. Prices rose by USD 2/MT in a day due to increase in spot steel prices.
There is sudden recovery in iron and steel future market which had lifted the price of spot iron ore by nearly 8% in two days.
In addition, China has cut on the steel capacity and it has tighten the supply which spurred the steel prices higher due which iron ore prices also moved further.Chinese spot billet prices are currently at Yuan 2,650/MT ($389/MT), up by $4.4/MT against yesterday’s closure. In addition, spot rebar prices in Shanghai was witnessed at Yuan 2,930/MT ($430/MT) up by $3/MT in a day.
Dalian Commodity Exchange most-traded month January’16 contract closed today at yuan 616.50/MT ($89.40/MT) up from Yuan 36/MT ($5.20/MT) against yesterday’s closure.
Rio Tinto Adds 10 MnT Production Capacity in Silvergrass Iron Ore Project
Rio Tinto, the world’s second largest iron ore producer, is raising the capacity of its Silvergrass iron ore project up to 10 MnT from previously announced 10 MnT per year. The project is likely to get completed by second half of 2017.
The miner aims to lift productivity across its assets to generate more cash. High-value operations like productivity improvements, depletion replacement through low-capital-cost brownfield has set to optimize Pilbara system.
Meanwhile, the company is keeping its 2017 shipment target at 330-340 MnT of iron ore.
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