The weathervane billet price in Tangshan jumped 50 yuan ($7.60) per tonne during the day, and China’s ferrous futures also soared across the board in the afternoon, with the benchmark contracts all gaining over 5% in value.
These gave a boost to iron ore trading activity – as well as prices – at China’s ports, which had been under pressure from restrictions on sintering and blast furnace utilisation rates in the cities of Tangshan and Handan in Hebei province, as well as Henan’s Anyang city.
The 50% limit to sintering and pellet production ordered by the Chinese government has “been completely enforced” across Tangshan, which resulted in local mills buying sintered instead of fines, a mill source in the city told Metal Bulletin.
But these processed materials are hard to come by in the market, he added.
A mill source...