China Iron Ore/Steel Markets Surging
Author: Date: 2016-3-8 13:55:27
Iron ore and steel prices are surging in China. Iron ore prices jumped 19.5 percent in one day as 62% Fe fines CFR Tianjin Port (China) rose to $62.6 per dry metric ton (dmt) according to TSI. TSI reported this morning,"A manic start to the week as buying frenzy gripped the iron ore market following bumper gains in Chinese steel prices over the weekend on news of drastic production curtailments."
Q235 Billet in Tangshan hiked to 2,020 yuan/ton (311 dollars/ton) by the end of Sunday March 06,surging 240 yuan/ton (37 dollars/ton) during March 05-06 and having increased by approximately 500 yuan/ton (77 dollars/ton) since February 14,the Chinese return from Lunar New Year Holiday. There’s a strong bullish sentiment about more rises ahead.
Construction steel prices in North China hiked as well. In Beijing and Tianjin,HRB400E 16-25mm rebar manufactured by Hebei Steel surged by 150-500 yuan/ton (23-31 dollars/ton) to 2,180-2,230 yuan/ton (335-343 dollars/ton). There were actual trades on that price level but most suppliers were unwilling to sell,with a number of them having stopped quotations.
In Tianjin,4.5-11.5mm HRC hiked 300 yuan/ton (46 dollars/ton) from Friday March 04 to 2,450 yuan/ton (377 dollars/ton),however not many trades were made because most hot rolled band suppliers were taking time off.
16-25mm medium plate increased by 200 yuan/ton (31 dollars/ton) to 2,400 yuan/ton (369 dollars/ton) by noon,and no further rises in the after as quotations stopped.
In Tangshan,Hebei province,most construction steel supplies stopped taking orders after multiple price rises.
In many markets in North China,a number of suppliers stopped quotations and were reluctant to sell out.
In a special report from China,Platts/SBB reported that the surge in steel prices has "unsettled rather than excited the market" in China. They reported,"Prices rocketed by Yuan 360/mt ($55/mt) as of Monday from last Friday yet without the support of any substantial improvement in fundamentals."