China's rebar producers seeing wider margins despite costlier iron ore

Chinese rebar producers are seeing their profit margins rise to nearly 700 yuan ($104) per tonne despite recent price increases in the iron ore market, sources told Fastmarkets MB this week.

“Steel mills can surely afford the higher iron ore prices because of the hefty margins that they are enjoying,” an industry source in Shanghai said. Chinese steelmakers raised their domestic and export offers this week following strong increases in iron ore prices fueled by supply cuts announced by miners Vale, BHP and Rio Tinto in the past couple of months. Iron ore prices experienced two rounds of sharp increases since the start of this year - the first, in late January after one of Vale’s tailings dams in Brazil suffered a deadly breach, and the second, between late March and early April, after a cyclone hit Western Australia and disrupted BHP and Rio Tinto’s mining...

Published

Jessica Zong

Paul Lim

April 11, 2019

08:18 GMT

Singapore, Shanghai