Following the Japanese steelmakers, Chinese steel producers have now also received notification from Australian miner Rio Tinto that it intends to raise its third quarter price for iron ore fines to $147/mt FOB, up 19.5 percent on the second quarter price.
This latest hike is bad news for Chinese steelmakers.
Meanwhile, influenced by the decline in iron ore spot prices, it is thought that some Chinese steelmakers may start turning to the spot market instead.
With their profits squeezed by rising costs and also facing weak demand, so far only small steelmakers in China are planning to halt or scale back production, with no large steelmakers as yet reported to be taking such measures.