Global iron ore prices are assessed at USD 62/MT, CFR China on 19 Apr’16. Prices are up by USD 8/MT starting this month. Prices are continue to gain strength upon speedy rise in spot steel prices in China.
Spot steel market is surged by USD 18/MT. Chinese domestic manufacturers have raised their offers by RMB 120/MT (USD 18/MT) to RMB 2,360/MT (USD 363/MT) from RMB 2,240/MT (USD 345/MT) in just last 2 days. Low inventory available with mill operators and surge up in seasonal demand in local market amid better construction activities have lent support to domestic billet offers in China.Meanwhile, Shanghai rebar and spot rebar prices have also moved up by RMB 10/MT.
China‘s crude iron ore production also fell by 6% in Jan-Feb’16, amounting to 161 MnT which was 172 MnT in the same period a year before. As domestic iron ore availability was less, the emerging steel demand has to rely on imports. However, iron ore imports rose by 6.5% last month as the steel mills restocked inventories has also led rally in iron ore prices.
Market analyst still cautioned that rebound in Chinese steel demand was unlikely to last and this gain in iron ore prices is still volatile.
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