Iron ore fines prices traded this week at $US163.60 per tonne, $US10.90 lower on a week ago
Hard coking coal prices were $US7.85 lower on-week at $US108.65 per tonne at Queensland ports
China’s steel reinforcing bar price is $US5 lower this week at $US725 per tonne
A step-back in Chinese steel prices this week and air pollution controls on some steel plants in China has exerted some downward pressure on iron ore prices at Chinese ports.
Cargoes of 62 per cent-grade iron ore for delivery to China edged lower to $US163.60 per tonne ($211.20/tonne) this week, according to Metal Bulletin.
This is down by around $US10 per tonne on a week ago, but the current price is still double that of $US80 per tonne from a year ago.
Air pollution concerns for Chinese cities have triggered a government crackdown on emissions from steel plants, which is translating into slacker demand for iron ore, said analysts.
“Premier Li Keqiang said this month the country will act strongly on climate change. As part of this, China pledged to rein in steel capacity this year,” said analysts at ANZ bank.
The steel production centre of Tangshan east of Beijing appears to be bearing the brunt of the pollution control measures which started last week.
“Authorities in Tangshan said they will launch widespread checks of steel mills to improve compliance with recent measures to curb steel output,” said the ANZ bank analysts.
The air pollution controls in China are starting to show up in prices for iron ore futures contracts on the Dalian Commodities Exchange in China.
The exchange’s May-settlement iron ore futures contract traded lower Tuesday at ¥1,030 per tonne ($US158.50/tonne), according to exchange data.
“Iron ore futures extended recent declines, with traders remaining concerned that China will continue to crack down on steel mills violating pollution curbs,” ANZ bank analysts said.
Source : https://stockhead.com.au/resources