DR Keyvan Jafari Tehrani, Senior International Steel and Iron ore market analyst, regarding the iron ore price above 120 $\/mt and increase in CIS billet price in an interview with Mines and Metals said: \u201cAccording to the fact that China\u2019s demand for steel has peaked and saturated, it seems that the iron ore market will face equilibrium and the price stabilize in 120-122$\/mt range.\u201d
\u201cWhen the iron ore price is low, the profit of steelmakers will be higher, and this is in accordance with the steelmakers\u2019 desire. As iron ore price has risen by 60$\/mt in recent months, it would be expected that billet price rise by 120$\/mt in return, as a result not only it didn\u2019t but also it has not even risen by 60$\/mt as well. When the iron ore is constantly rising, steelmakers do not accept this much increase and resist it. As we see, when the price of iron ore was low, Chinese steelmakers\u2019 profit margin reached 100$\/mt, while the increase in iron ore price effected the profit and it has reduced to 20$\/mt which is against their will,\u201d he also added
DR Jafari Tehrani pointed out that the demand for semi-finished steel products varies, but China reached the maximum demand in mid-August, in result significant increase in prices is unexpected.
\u201cThe increase in the price of semi-finished and finished steel products in the Middle East is due to UAE and GCC countries back to the market, which is why India and CIS countries are moving their steel demand to these countries, and Turkey tries to feed the region at the same time.\u201d, this Senior Analyst also stated.<\/p>\n\n\n\n