Iron ore prices in China have witnessed a sharp rise today (12 Jul’16) and have moved up by USD 4/MT D-o-D.
Against yesterday’s closure of USD 55.4/MT, CFR China Australian iron ore fines (Fe 62%) price was recorded today at USD 58.8/MT, CFR China.
Prior to this, prices were last seen at this level 6 May’16 after which prices followed a downward trend.
The reason behind this sudden price rally is production cuts at Tangshan – steel making hub in Hebei province of China. Sintering plants in Tangshan were ordered to cut output for the rest of this month so as to cut emission levels. As per reports, sinter plants and re-rollers in the city that meet environmental protection requirement can continue operating normally over 12-24 Jul’16 but must halt production over 25-31 Jul’16.
Steel production cuts in Tangshan and low inventories in the steel mills supported price rally.
Spot rebar prices also move up – While spot billet prices rose by RMB 50/MT, spot rebar prices in Beijing jumped by RMB 95/MT.
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