- Write by:
-
Friday, April 16, 2021 - 10:41:32 PM
-
760 Visit
-
Print
Mining News Pro - Iron ore prices continued to climb on Friday despite concerns over environmental restrictions in China.
Tangshan, China’s top steelmaking city, said last month it will punish firms that either have not taken the steps spelled out under its emergency anti-pollution plan or have illegally discharged pollutants, following weeks of heavy smog in northern China.
Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were changing hands for $178.43 a tonne on Friday – the highest level since 2011.
The high-grade Brazilian index (65% Fe fines) also advanced to a record high of $211.10 a tonne.
“Steel margins in China are very attractive at the moment, so even with the restrictions in Tangshan, other producers have every incentive to try to increase operating rates,” ING head of commodities strategy Warren Patterson told the Financial Review.
“Stronger margins, along with more focus on reducing emissions, has also proved supportive for higher-grade iron ore demand. This is reflected in the quality premium, which has widened recently,” Patterson said.
“Despite talk of nationwide inspections, we believe other regions will ramp up, particularly given the spike in steel margins,” JPMorgan analyst Lyndon Fagan said.
According to IndexBox, global steel consumption is forecast to increase in 2021 by 4.1% year-on-year.
Prices have also been fueled by falling supplies from major miners.
Goldman Sachs expects the market to enter a surplus in the second half of the year on higher Brazilian exports, bank analysts wrote in a note, adding they see prices falling back to $110 a tonne by the fourth quarter and below $100 in 2022.
Short Link:
https://www.miningnews.ir/En/News/612168
Oxford Economics Australia has released data showing mine maintenance spending may be hitting its peak. But what does it ...
Copper climbed above $10,000 a ton as predictions for tighter global supplies and rising consumption in electric ...
Iron ore futures fell to their lowest in more than two weeks, pressured by an inventory accumulation at Chinese ports ...
Anglo American’s key South African shareholders are open to a takeover offer from BHP, with some advocating for an ...
Japanese steelmakers have raised concerns with Australian authorities that BHP Group could become too dominant in the ...
Japan’s top steelmaker, Nippon Steel, is sticking to its plan to close a deal by year-end to buy US Steel, which it ...
Anglo American’s key South African shareholders are open to a takeover offer from BHP, with some advocating for an ...
Japanese steelmakers have raised concerns with Australian authorities that BHP Group could become too dominant in the ...
Indonesia’s nickel reserves are sufficient for expanded processing operations, an investment ministry official said on ...
No comments have been posted yet ...