Chinese iron ore and steelmaking prices November 20 2017
Traders lifted their morning offers of spot resources by RMB5-10/tonne today and partial small-sized traders show desire to deliver cargos. Demand of steel mills is hard to improve in the short term influenced by environmental policies and production limitation measures. They make purchases as planned to ensure normal production. Transaction price of PB fines stands at RMB470/tonne in port Tangshan, while the price for PB lumps is pegged at RMB625/tonne.
Iron ore spot market shows flat performance today and market enquiries remain fair. Transactions are unfavorable. Many traders expressed that iron ore spot market has shown weak upward momentum and steel mills have started to depress iron ore spot prices. Moreover, port stocks of traders sustain a high level and mainstream high grade resources see frequent arrivals in recent days. Many traders hold pessimistic attitude towards the following market in the short term.
Steel mills’ demand for iron ore spot resources starts to decrease on account of environmental policies, production limitation measures and peak-shift plan. Steel mills mainly plan to ensure the normal production and have no purchasing plan at a large amount. Iron ore spot prices are mainly expected to hold stable in the short term and some low-grade resources are likely to fall.