Iron ore prices have continued to go down in China, coming closer to $90/mt CFR again as the situation in the steel market has worsened due to the lack of strength of demand and expectations of high production during the winter. Today, Thursday, September 19, prices for iron ore fines with Fe 62 percent content have lost $3.5/mt to $92/mt, while Brazilian fines 65 percent Fe content have also moved down - by $2/mt to $100/mt CFR.
Buyers have been cautious towards purchases seeing a decline in steel prices, while sentiments have become negative for the coming months. Rebar futures at Shanghai Futures Exchange have closed today at RMB 3,397/mt ($480/mt), RMB 116/mt ($16/mt) below the settlement price on Wednesday. China’s government has announced its draft plan for steel production restrictions for the next six months, which includes similar rules to last year’s, and market sources are expecting production in the market to remain high, which will weigh on prices.
Iron ore futures at Dalian Commodity Exchange have lost RMB 31/mt ($4/mt) today, coming to RMB 637.5/mt ($90/mt).