Iron ore to keep going down following rebar prices drop in China

Monday, 12 August 2019 14:01:06 (GMT+3)   |   Istanbul

Iron ore prices have been stable on Monday, August 12, but bearish sentiments, record low iron ore futures and dropping steel prices in the physical market will put pressure on the raw material this week. Prices of Australian iron ore fines with 62 percent Fe content have maintained at $90-92/mt CFR, while Brazilian 65 percent Fe fines have been at $98-100/mt CFR.

Buyers were still refraining from purchase in the seaborne market, while the signs in the steel market were negative. On Monday, the largest private steel mill in China - Shagang Group – announced the prices cut by RMB 200/mt ($28/mt) for rebar sales in August 11-20. The price came to RMB 3,970/mt ($565/mt). SteelOrbis’ average rebar prices in local Chinese market softened by RMB 123/mt ($17.5/mt) over the week. Weak demand and high inventories in the longs steel market in China will put pressure on iron ore till the end of August, market participants believe.

Iron ore futures at the Dalian Commodity Exchange lost 3.2 percent since Friday, coming to three months’ low level of RMB 625/mt. Future on the Signapore Exchange lost another $0.83/mt coming to $88.25/mt.

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