SteelOrbis Shanghai
Overall Chinese
iron ore prices are stable with minor drops in some regions over the course of last week. Market players are waiting to see what will happen next.
The restructuring work on mines is approaching to the end; therefore more and more mines in Tangshan region have resumed
production, leading to an increase in
iron ore supply. The
iron ore prices in Tangshan slightly went down, while those in other regions are stable recently, and the prices in southwestern markets are firm. Both steelmakers and miners are waiting for the outcome of international
iron ore price negotiation.
The fourth round of international
iron ore price negotiations which began last week has not come to a conclusion yet. The relevant people in
China's Iron and Steel Association stated that the price negotiation might be prolonged to May unless reasonable prices are determined. Prolonging the negotiation is beneficial for Chinese steel mills. The investment in
iron ore mining in
China since 2003 has started to give fruits with an increase in
iron ore supply, imposing more and more pressures on the market. The price trend in Tangshan is a sign of this.
Meanwhile there are some rumors stating that
China might get
iron ore from North
Korea. Furthermore, Indian iron miners and Chinese steel mills will discuss on making long-term contracts instead of spot sales during a conference to be held in
China's Qingdao city during April 13-14.
On the other hand, rumors stating that Indian government may restrict the
iron ore export to
China are against Chinese steel mills because
India –being the second largest
iron ore import source for
China- plays a vital role in
China's
iron ore import supplies. However, the possibility of a restriction is slim.