The drop in spot steel prices and the rise in international iron ore prices have led to a sharp decrease in the desire of many domestic steel companies to import iron ore in the traditional way.
“Shagang once stated that if the price of international iron ore exceeds US$160/ton, imports will be more difficult,†said the industry insider.
Although the demand for spot steel in the Chinese market is sluggish, the increase in price in the third quarter of the world’s three major mines has supported the spot ore price. The recent spot iron ore prices have stabilized again. As of last Friday, 63.5% of the Indian mines contained China's export prices remain at 152 to 153 US dollars per ton. The transaction price of iron ore with a port grade of 62% was around 1,160 yuan/ton, which was calculated according to two extensions' notification to the Japanese steel company's third-quarter iron ore FOB price of US$147/ton. The CIF price will be 1,200 yuan/ton. about.
The consumption of China's domestic steel market is still weak in the short term. Some mills have indicated that they are reluctant to purchase at prices higher than 152 US dollars per ton, while Indian suppliers' prices have also changed greatly, generally between 153 and 155 USdollars per ton. However, Australian iron ore suppliers BHP Billiton and Rio Tinto have informed Japanese steelmakers to increase prices by 23% in the third quarter, and China’s quarterly prices will also increase by the same amount.
Iron ore containing 63.5% iron in Indian origin contains a freight rate of US$154 per ton, which is higher than US$152-154 last week.
This week, 62% of the iron-ore spot iron ore index held steady, at $143.10 on Wednesday.
Traders at major international trading companies in southern India stated that “there are rumors that small traders, especially those from Hong Kong, are making speculative buying.â€
An exporter in Orissa stated that the freight rates from India's east coast to China's major ports have remained stable for a week. The single port in Savinkapatnam is charged at US$18 per ton.
Shipping charges for the two ports in the ports of Haldia and Paradip are US$21-22 per tonne.
However, due to the slowdown in activity, international freight prices have been weak.
The Baltic Dry Index fell 4.21% on Wednesday to 2,893, the lowest level since April 2.
Affected by the annual monsoon rain, the number of iron ore that India can use for export is still small before September.
According to the China-ASEAN Mineral Resources Network, the current domestic iron ore market is deserted and trading volumes are scarce! Due to weak downstream demand for steel products. And steel prices have been reduced, the current price of iron ore on the international market, China's steel prices are indifferent, but out of cold-sighted situation; and steel companies also intend to further reduce the purchase price of iron ore!