Global iron ore prices are assessed at USD 58.3/MT, CFR China on 22 Mar’16. Prices are recovering back to USD 60/MT over the past last week as Chinese steel prices improves.
Prices were dropped down to USD 37/MT, CFR China in Dec’15 where they had recorded new low. But, as the demand for steel improves over increase in seasonal construction activity, iron ore prices has risen more than 55% within last three moths.
Today, Shanghai rebar prices has also touched to a level of nine-months high at RMB 2,120/MT (USD 326/MT). Chinese billet prices in China’s Tangshan region rose 10 yuan to RMB 1,950/MT (USD 300/MT) today.
According to market participants, steel inventories both at mills and on the spot market were 20% lower than the same period last year. Mills are making profits amid the surge in steel prices and have kept stock levels low so they will soon need more iron ore to produce more finished product.
One of the Chinese market participant mentioned “ The strengthening steel and billet prices, along with increased profitability for mills is likely to support iron ore prices to some extent”.
Market analysts anticipates that with the increase in steel demand till May, upon seasonal constructional activity, demand for iron ore may also improves which will further support iron ore prices and prices may increase further.
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