Chinese steelmakers postpone iron ore shipments

Chinese steelmakers postpone iron ore shipments

According to the latest information from industry sources, the falling steel prices in China have prompted Chinese steelmakers to begin postponing their imports of iron ore from Australia and Brazil. May saw hot-rolled coil prices plummet RMB 1'500-2'000/ton ($181.16-241.55/ton) to fall below the RMB 4'000/ton ($483/ton) level. This severed as a wakeup call for many steelmakers, causing them to put off their imports of iron ore until later in the year. These steelmakers will now take steps to reduce production and attempt to get rid of their existing inventories. The slowing iron ore imports to China have also led to a decrease in freight rates for iron ore from Brazil to China. Freight prices, now around $20/ton, have declined almost 50% from the first quarter.