Iron ore and Coal

Chinese Spot Iron Ore Fines Price Rise to 8-Month High

Chinese Spot Iron Ore Fines Price Rise to 8-Month High
Mining News Pro - Iron ore price for Fe 62% fines has been witnessing increase since the beginning of last week.
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According to Mining News Pro -Iron ore price for Fe 62% fines has been witnessing increase since the beginning of last week. Benchmark iron ore fines (Fe 62%) index increased sharply by 7% to USD 77/MT yesterday (i.e 25th Oct’18) CFR, China against USD 72/MT at the end of last week. Thus W-o-W basis, it has climbed by USD 5/MT.

On monthly basis, Chinese iron ore spot iron ore fines (Fe 62%) price up USD 8/MT M-o-M at USD 76.5/MT, CFR China. Prices have climbed close to 8-month high as these levels were last seen in early March this year.

Amid restocking by Chinese mills ahead winter season, fines prices have got a boost. Iron ore inventory at Chinese main ports increased by 1.5 MnT W-o-W to 144 MnT at the end of last week.

Why are spot iron ore fines price witnessing increase in China?

1. Uncertainty on Sintering and Production cuts-: There is uncertainty prevailing in few Chinese provinces and there are ambiguities regarding steel and sinter production cuts in the winter season. There are anticipations that excisions on pollution fighting might not be that severe as expected.

2. Shift towards iron ore fines than pellets - Amid less strict norms, Chinese steel mills have preferred to purchase fines rather than going for high priced pellets.

3. Less stringent regulation shifted demand for medium grade fines: Australian medium-grade iron ore consumption has increased due to less stringent environmental regulations have also resulted in some mills securing medium grade fines with higher alumina content to cut production costs.

4. Decreasing steel prices-: Steelmakers are reluctant to pay the high premium for high-grade fines. Mills owners are tried to take advantage of the current situation to change the feeding blast furnace pattern with low-grade fines to improve the cost-effectiveness of their blast furnace output. Domestic HRC prices in eastern China have come down by RMB 40/MT and domestic rebar prices by RMB 80/MT in a week’s time.

 

 


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