International iron ore trading ended on Friday with lower prices. China played an important role in lowering iron ore prices. We have already explained that China is looking to reduce steel prices due to its current economic development policies. Therefore, it has implemented this route with the fall in iron ore prices. It seems that this path has just started and can moderate the current path of the steel market. In this regard, news outlets announced that iron ore futures continued to decline sharply after reselling at the end of yesterday’s trading session, amid declining steel consumption. In the following, we will analyze this issue. Please be with Artan Press.
*** Decline in iron ore trading in the shadow of Chinese policies
Chinese ports saw a significant drop in iron ore prices yesterday. The final prices of iron ore in the Chinese domestic stock market were as follows: 62% of granulated iron ore fell by 7.5%, iron concentrate fell by 6% and pellets fell by 7.5%. This also happened on the Dalian and Singapore stock exchanges. In this market, we saw a decrease in the number of Long buy demand and an increase in the number of Short Iron Ore Trading sales positions, which has imposed a relatively high pressure on the market. The market for iron ore on Saturday and Sunday is likely to be affected. Iron ore trading is likely to fall by at least 2% in the coming days under the pressure of these factors, as demand in this area has declined until further notice.
*** China’s economy and its role in declining iron ore transactions
Some analysts have predicted that China will cut steel prices to reduce its modernization costs to expand its economic infrastructure. In this regard, it has decided to reduce its domestic steel production and turn to steel imports. The main reason for this decision is environmental pollution, which poses a serious threat to the country’s economy. The decline in China’s steel production will lead to a decline in iron ore transactions, which are mainly destined for the country. For example, the Dalian Commodity Exchange (DCE) futures for September delivery fell 7.33% to 8236 yuan ($ 12.69) daily at 1036 yuan per tonne ($ 160.35) on Friday, July 30. . Continuation of this trend can pave the way for steel production with more competitive prices.
*** The lowest price of iron ore in the last three months
In the current situation, the price of Iron Ore Trading has reached its lowest level in the last quarter. According to reports from the Chinese stock market, the price of iron ore is $ 180 per ton. Due to the steady rise in steel prices, a large number of investors had invested in the iron ore market. But their calculations are slightly different from current market realities. This issue has increased the trading risk of the downstream steel chain with these conditions. The market is deeply concerned about the decline in Chinese steel in the second half of this year, which will lead to a decline in demand for iron ore.
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