Chinese iron ore and steelmaking prices March 30 2017
Morning offers of spot market see obvious growth today. Partial traders are eager to lift the prices by RMB5-10/tonne under strengthening iron ore futures. Spot market transactions increased obviously yesterday and focused on high grade iron ore resources. Lumps prices basically hold stable and price gap between iron ore fines and lumps grows to RMB40-50/tonne. The main reason is that production restriction has ended and steel mills’ demand climbs up. Additionally, spot resources of high grade lumps show small amount. Spot market transactions focus on mainstream high grade ore resources. Profits of steel mills are depressed by falling steel transaction prices. Steel mills choose a few non-mainstream resources to control the cost. Traders show high desire to make shipment and have no confidence in the subsequent market. Billet prices increase this afternoon and cargo deliveries witness good performance, which underpins imported pre prices. Spot market prices have seen frequent fluctuations recently and overall market is estimated to edge up in the short term.