Iron ore prices at Chinese ports dip further as production cuts dent demand

Restrictions on blast furnace and sintering production in north China continued to take toll on iron ore prices at the country’s ports on Thursday October 12.

Key drivers Iron ore trading activity remained lacklustre at the ports amid the shadow of restrictions on sintering and pellet production in Tangshan and blast furnace operating limits in Handan, as well as losses in the futures market in the morning. Lower transaction prices were reported, with little improvement seen even as ferrous futures shot up late in the afternoon. The restrictions on production have directly dented demand for iron ore fines at the ports, with buyers showing a preference for pellets, sources said. A cargo of Indian pellets reportedly changed hands at 1,060 yuan ($161) per wet tonne at Tangshan’s port, 10 yuan per tonne higher than a day earlier. However, a trader in east China said that current pellet prices were “already risky,” arguing that they had been “the most overestimated.” In contrast, Super...

Published

July Zhang

October 12, 2017

11:45 GMT

Shanghai