Iron ore prices have increased on Monday, December 2, following futures gains amid the news that the local government in Tangshan has announced an easing of restrictions on production for December. Prices for iron ore fines with 62 percent Fe content have reached $89/mt CFR, up by $1.5/mt from Friday, while fines with 65 percent Fe have increased by $1.4/mt over the same period to $101/mt CFR.
Iron ore futures at Dalian Commodity Exchange have closed RMB 7.5/mt ($1.1/mt) higher at RMB 653/mt ($93/mt) today, reflecting better sentiments in the market. According to sources, the Tangshan government has issued restrictions plans for December, according to which mills in A and B categories will be free from restrictions, while there will be no fixed rules for producers in category C (includes most steelmakers) with restrictions to depend on emissions. As a result, iron ore consumption may increase to higher levels.
However, overall demand has been limited on Monday with no deals at trading platforms over the day. Those customers still in the market to buy have preferred to purchase from ports, paying RMB 5-10/mt ($0.7-1.4/mt) more than on Friday.
