It is reported that the survey of 40 steelmakers and 100 traders show
that the majority believe imported iron ore price will remain stable in
the third week of November.
Forecasts on imported iron ore price trend vary modestly from that in
last week. Although mainstream forecasts show price will be stable,
some are optimistic towards market in next week as medium and small
steel mills in Tangshan resume operation, boosting demand for imported
iron ore. 49% of steelmakers and traders agree the market will keep
stable, 38% think price will slide, 11% is unclear of the trend and 2%
expect the price to go up.
Iron ore price stays firm recently. Spot price for 63.5% ore stabilizes
at CNY 600 per tonnes. Total stocks at ports decrease by 750,000
million tonnes from last week to 70.12 million tonnes, including 16.4
million tonnes of Indian ores, down 1.35 million tonnes WoW. Besides,
China has adjusted export duties on steel products and this will exert
positive influences to domestic steel mills. Some medium and small
steel mills in Tangshan have resumed productions and started to
purchase the material at low prices. Moreover, due to shrinking demand
from China, miners have all cut supply. Against such a backdrop, some
steelmakers and traders believe iron ore market will mainly keep stable.
As per report Steel price is unlikely to stop falling in a short term
as it will take some time for the policy to be implemented. Steel
billet price goes on declining this week, with lowest price of CNY 280
per tonnes in Tangshan. Small steel mills that have just resumed
productions may face suspension again. Financial crisis has impacted
exports of China's steel products. The country yielded 42.93 million
tonnes of steel products in October, a YoY drop of 12.4% yet in the
meanwhile it imported 30.62 million tonnes of iron ore, a MoM fall of
8.58 million tonnes.
Ocean freight rates keep diving this week. The rate for Tubarao Beilun
and Campier Beilun stands at USD 9.03 per tonnes and USD 4.32 per
tonnes. India has again lowered export duties on iron ore early this
week. The rate on ore fines was adjusted to 8% ad valorem. This may
trigger more FOB price cuts for Indian iron ore.
Source : Steelguru