Global iron ore prices are assessed at USD 40.2 /MT, CFR China on 22 Dec’15. Prices have moved up above USD 40/MT on account of strong steel prices in China.
Shanghai rebar prices are assessed at RMB 1,749/MT (USD 273/MT) on 21 Dec’15. Prices have hit one month high.
Some unprofitable Chinese mills have cut their steel production. On the other hand, in Beijing, the government had forcefully shutdown the plants to fight against pollution smog. These factors supported steel prices, especially rebar prices in China to rebound.
This price rally would be for short period of time. But, traders still doubt about whether steel demand would pick up in China due to allay in construction activities amid winter season.
Keeping steel demand in mind, Baoshan Iron & Steel, China’s largest steelmaker, has decided to rollover steel products prices for Jan’16 shipments. The company’s pricing policy usually reflects the mood of Chinese steel industry as it is considered as a benchmark in terms of pricing policy.
On the other hand, iron ore inventory at major Chinese iron ore ports was registered at 95.4 MnT (as on 18 Dec’15); highest since May’15.
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