Iron ore prices have declined today again following tighter sintering and steelmaking restrictions in Tangshan starting from October 31 and higher iron ore supply than demand in China. Iron ore fines with 62 percent of Fe content have lost $1.6/mt over the day to $85/mt CFR, while Brazilian iron ore with 65 percent Fe has decreased by $2/mt to $92.2/mt CFR.
A deal for 170,000 mt of low-alumina Brazilian blended fines with 62 percent Fe content has been done at $85.6/mt CFR for shipment during November 27-December 6.
Tangshan government has announced new restrictions measures: sintering and pelletizing machines belonging to categories B and C will fully halt production starting from October 31, while, if the emergency measures exceed 120 hours, they will halt 50 percent of their capacities after the 120-hour period. Such restrictions have put pressure on iron ore quotation and have supported steel prices in the country. Spot rebar prices have added RMB 10/mt ($1.4/mt), while rebar futures at Shanghai Future Exchange have increased by RMB 34/mt ($4.8/mt).
$1= RMB 7.058
