Steel mills in the world’s top producer prepared for winter production cuts. Beijing has ordered winter steel production cuts across the north of the country, including some key steel producing regions including Hebei, Shandong and Shanxi, from November as part of efforts to meet pledges to reach air quality targets.
Experts, expect higher quality raw material needed to comply with the government’s crackdown on low-grade steel furnaces. Due to strong steel production the Chinese iron ore imports will continue to be high; moreover the production still can wait until the second week of Nov as the winter begins.
The iron ore prices have been rising in China consistently from the end of June. Monthly average spot iron ore fines (Fe 62%) prices were analyzed at USD 71/MT, CFR China in Sept’17 against USD 76/MT, CFR China in Aug’17. China iron ore imports in Sept’17 were highest ever. China accounts for nearly 70% of world’s seaborne iron ore trade and imports iron ore majorly from Australia, Brazil, South Africa, India, Ukraine and Iran.
Source Steel Mint powered by Keyvan Jafari Tehrani (JTC)