Prices for imported iron ore have touched the $100/mt CFR mark, today, March 3, for first time since mid-January, as demand concerns have been rising, following the steel production cuts expected in China, in Tangshan in particular, from March 4 to March 13.
The price for iron ore fines with 62 percent Fe has dropped to $100.1/mt CFR, down by $2.9/mt from the last trading day on Friday, February 28. At the same time, ex-Brazil fines with 65 percent Fe content have been at $113.4/mt CFR, losing $2.29/mt from Friday.
On March 3, 23 deals for iron ore have been signed at the Corex platform, including 80,000 mt of 60.6 percent Fe Mac fines sold at $95.9/mt CFR for shipment during March 26-April 4. Also, 10,000 mt of 63.14 percent Fe fines were traded at RMB 798/mt ($112.3/mt) for stocks at port.
“There is escalating control of production in such areas as Tangshan [during the Two Sessions]. The market follows the cost-cutting logic, with demand slowing, and the iron ore price has fallen to $100/mt CFR since January,” a Chinese source said. From 00:00 on March 4 to 24:00 on March 12, independent hot rolling enterprises in Tangshan, the major steelmaking hub in northern China, will halt production, as required by Hebei Province’s Tangshan Bureau of Ecology and Environment, according to market information. Also, a number of mills, not only in Hebei Province, have announced maintenance works which will last at least until mid-March.
Nevertheless, as more positive news is expected from the Two Sessions meeting this and next week and as demand for steel is going to improve this month, iron ore prices may receive support later in March.