Global iron ore prices are assessed at USD 52.3./MT, CFR China on 07 June’16. There is a short-term revival in prices due to upcoming holidays. Chinese steel prices also rose today.
Due to upcoming Dragon Boat Festival in China later this week, global iron ore prices in China rally further as Chinese mills have again started restocking the material ahead of holidays.
Chinese steel prices also rose today lending support to thin iron ore market. Today, Chinese billet (Q235) domestic offers are assessed at RMB 1,890/MT (USD 290/MT), up by RMB 30/MT (USD 4.6/MT) in a day time. On the other side, Shanghai rebar prices also rose by RMB 45/MT and assessed at RMB 2,103/MT (USD 323/MT).
Alongside, China’s top steel producing city Tangshan has also announced to cut their production between 14 June’16 to 21 June’16 to improve air quality. Construction activity in China also slows down between June-August creating slack steel demand.
Currently, there is short term demand that has been created in the market as steel mills are actively started restocking raw material mostly from the port stock cargoes.
Iron ore stockpiles at China’s major ports stood at 100.25 MnT on 03 June’16, down by 0.4 MnT from last week when it was highest since Dec’14.
Iron ore prices have retreated around 27% since when it touched to a level of 16-months high in mid-Apr’16 after China’s exchange put a restriction on speculative trading.Global Iron Ore Prices Reach to USD 52/MT.
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