Import iron ore prices for China have posted a sharp decline today, Wednesday, September 1, following a 7.8 percent drop in futures prices today, as demand worries have increased amid announcements of more crude steel production cuts.
The price for iron ore with 62 percent Fe has slipped to $142.55/mt CFR, down by $7.55/mt today, after a slight decrease a day earlier. Ex-Brazil ore with 65 percent Fe has come down to $162.2/mt CFR, losing $8/mt on the same day.
There have been no deals at trading platforms today and market participants have reported a fall in demand in both overseas markets and at Chinese ports. Buyers have been careful in purchases, amid more news about steel production cuts in China. Early this week, the Chinese government said that steel and aluminium producers in Guangxi Province will have to cut utilization rates by up to 50 percent. In addition, the Tangshan authorities announced their aim to cut emissions in September, which will lead to a steel production reduction of up to 30 percent this month.
As a result, concerns over iron ore demand have increased further, and have been reflected in the sharp fall in futures prices in China. They have slumped by 7.8 percent or RMB 64.5/mt ($10/mt) today to RMB 765/mt ($118/mt) at Dalian Commodity Exchange.
$1 = RMB 6.468