Iron ore prices in China have posted a sharp decline on Monday, July 10, as lower steel production in Tangshan has started to put more pressure and suppliers have been trying to at least keep sales flat, lowering prices. At the same time, there has been no new stimulus measure news, which was awaited and were supporting iron ore prices from big declines last week, while the fresh economic data has been disappointing, weighing on the sentiments.
Iron ore fines with 62 percent Fe content have been at $105.6/mt CFR, down by $3.4/mt or 3.1 percent from Friday. Iron ore with 65 percent Fe content has come to $117.75/mt CFR, dropping by $3.55/mt over a day.
A deal for 90,000 mt of 60.8 percent Mac fines has been closed at $101.6/mt CFR, while 61.78 percent PB fines were sold at RMB 852/mt ($118.3/mt), delivery at Rizhao port.
Market sources have said that the hot weather in China with up to 40 degrees already seen in some provinces will continue to exert pressure on steel prices and steel production curbs in Tangshan have been affecting demand for iron ore. Moreover, the recent economic indicators released on Monday have been disappointing.
The consumer price index was flat in June from last year, according to the National Bureau of Statistics on Monday, being the lowest rate since February 2021. China’s June producer price index (PPI) plunged 5.4 percent year over year, the lowest since late 2015. In such conditions, more and more analysts are talking about the necessity of more stimulus from the PBOC.