Iron ore prices weaken as mill stoppages threaten demand

Production restrictions on various segments of the steel sector in north China continued to cast a shadow over iron ore prices and trading activity on Wednesday October 25.

Key drivers The complete suspension of sintering and pelletizing activity imposed on mills employing wet desulphurization in north China’s steelmaking hub of Tangshan from Tuesday until Friday could be affecting up to 70% of all steelmakers in the region, according to sources. The remainder too have to cut their production rates by at least half, they added. This has led a number of mills to begin hot idling their blast furnaces or at least lower their production rates due to a shortage of sintered ore, local media reported. As such, there was little iron ore trading activity at Chinese ports during the day, resulting in prices softening slightly. China’s ferrous...

Published

July Zhang

October 25, 2017

11:41 GMT

Shanghai