According to sources, the price of iron ore rose on Wednesday, August 11, after the upward trend in steel and coke prices. But the demand outlook remained sluggish. It seems that a new wave of corona pandemic in China is gripping the country and we are likely to see a decline in production and a decline in markets in this country. In the following, we will present the statistics of iron ore transactions on August 11, quoted by Metal Bulletin. Please be with Artan Press.
*** Latest news about iron ore prices in international markets
Due to the decline in production in China and on the other hand, the result of China’s production reduction policies, which were sometimes imposed on the market, we saw a cross-sectional rise in prices in China and other international steel markets. In this regard, the transactions of the main port of Chi in the iron ore sector have provided the following reports:
۶۲% Pure Fine Iron Ore was traded at Cfr Commercial Estate in Jingdao Port at $ 165 per tonne, up about $ 3 per tonne.
Pure Iron Ore 62% Aluminum Alloy Fine with CFR Commercial Estate from Jingdao Port traded at $ 165 per tonne, up about $ 4 per tonne.
Pure 58% pure high grade premium iron ore traded at CFR Commercial Estate in Jingdao Port at $ 134 per tonne, up about $ 3 per tonne.
۶۵% pure high grade premium Brazilian fine iron ore was traded at Cfr Commercial Estate from Jingdao Port for $ 195 per tonne, up about $ 2 per tonne.
۶۳% Australian Pure Premium Fine Grade Iron Ore was traded at Cfr Commercial Estate in Jingdao Port at $ 180 per tonne, up about $ 1.5 per tonne.
*** Important key factors in determining global iron ore prices
Most trades in January iron ore futures on the Dalian Commodity Exchange (DCE) experienced a fall in price yesterday morning. But it climbed again in the afternoon, closing at 2.2% from Tuesday’s closing price of 853 yuan ($ 132) per tonne. Meanwhile, the biggest deal on last month’s iron ore trading deal was unveiled on the Singapore Stock Exchange (SGX) last September. As of 6:22 pm Singapore time, $ 4.09 per tonne has been reported on the iron ore market for iron ore trading. The settlement price on Tuesday was $ 159.91 per ton.
*** Steel price growth forecast in the coming months
A steel source in Shanghai said steel prices would rise in the coming months due to declining steel supplies. This may be an intolerable issue for Chinese politics. But China certainly cannot continue this trend. Coke prices, on the other hand, have been on the rise due to supply problems caused by low interest rates, which means that iron ore prices will be supported in the same way.
*** A downturn awaits the iron ore market
According to fast market sources, the outlook for demand for iron ore continues to decline. Demand for iron ore is expected to weaken by February 2022 due to further declines in steel production and tighter control over greenhouse gas emissions, a source in northern China said. He said the controls, which will be implemented in Tangshan next winter to prepare for the Winter Olympics, will weaken the market. The February Games in Beijing are politically significant for the country.
*** Reduction of iron ore prices and its impact on premiums
Premiums will be fixed at lower rates due to weak demand. Some sources say that a large steel plant in China sold the shipment in September on the secondary market at a premium of $ 1 per ton. Meanwhile, several steel mills are said to be selling their long-term contract shipments to offshore shipments. The iron ore market is expected to remain under pressure despite relative price improvements. Because under the expected steel production limit in China, most provinces will have to reduce their production in the second half . A second source in Shanghai said China’s total crude steel production in the second half could fall 9 to 17 percent a year, greatly reducing demand for iron ore.
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