Global iron ore prices have touched the level of USD 80/MT on 10 Jan’16. Prices have moved up by USD 4 in first two days of Week 2.
Chinese government has announced deadlines to halt substandard steel production by 30 Jun’17. As a result of which, iron ore and steel futures rose today leading to rise in iron ore prices.
Enquiries for high grade material at Chinese ports were limited and entirely for high grade fines. However, for low grade Fe 57/58% Indian fines, material is still offered at a discount of 30% against Fe 62% fines.
Dalian Commodity Exchange – iron ore futures also moved up sharply by 22 Yuan (USD 3/MT) and witnessed at 594 Yuan (USD 86/MT).
Shanghai rebar futures also jumped 7% today on announcement of China’s steel making province to reduce production capacity.
It is to be noted that, prices have strengthen in 2017, but many market participants are not confident about long-term fundamentals.
Leave a Reply