Trading in China’s iron ore market turned quiet last week as industry participants suspended operation for the upcoming Chinese New Year holiday. In Tangshan, prices for steel billet orders placed before the holiday have been determined at RMB 1,990/mt (delivered to factory, in cash), and market prices remained largely stable last week.Transactions for iron ore at Chinese ports were also few. Several traders replenished stocks, fearing that increasing purchases after the holiday may result in a price hike.
Background
The iron ore pricing has always been dominated by the world's top three iron ore producers. As world's largest steel producer and consumer, China, however, has never had a voice in iron ore talks. World's top three mining giants led by BHP expect the financialisation and indexation of iron ore, so that the price is not only determined by supply & demand, but also affected by many other factors.
Industry Trend
The world's top three iron ore producers together raised the iron ore contract prices in Q3 2010, leaving the already sluggish steel market in a worse situation. In contrast, existing prices of domestic iron ores and spot prices of imported ores are well below iron ore contract prices. Contract prices are higher than spot prices. Where do/ will Chinese steel mills go?
Thus, SMM launches China Iron Ore Weekly Monitor which emphasizes on tracing and analyzing the iron ore price and its trend. SMM also issues Iron Ore Price Index based on the prices gathered from domestic iron ore miners directly. Moreover, the integrated research on iron ore import & export, plus the analysis on weekly highlights could help readers to understand China iron ore market comprehensively and allows more accurate prediction of price movements.
Key Features:
- SMM iron ore fines prices are the direct quote from the iron ore fines manufacturers, which ensures its reliability and timeliness.
- Based on analysis of industry-related macro and micro policies, thousands of telephone surveys, and extensive contact with industry experts, SMM presents the report in a comprehensive and insightful manner. From the prices, supply & demand, import & export, inventories, this report will provide you the integrated analysis on iron ore market trends on a weekly basis, and help you better understand reasons behind any change in the industry.
Source: Shanghai Metals Market