Iron ore exceeds $180/t first time since 2011
Iron ore price resumed the increase on Monday in line with insiders’ forecasts. Strong demand and optimistic expectations for this year have pushed the raw material above $180/t CFR for the first time in almost ten years, despite the new round of production cuts that will start in Tangshan this week.
Australian iron ore fines 62% Fe rose by $3.4/t to $180.5/t CFR, the highest since September 2011, while its futures on the DCE gained RMB 14/t ($2.1/t).
Trading volumes in the seaborne market were even higher than on Friday, with 570,000 t being sold on platforms on April 19. High-grade material from Brazil remained the most demanded product.
The demand was backed by expectations that steel production in China will remain high this year despite the government efforts to reduce it compared to last year’s figures, insiders say.
The news about forthcoming production cuts in Tangshan did not affect market moods much. “The restrictions will be imposed on re-rolling companies, so they will not directly affect iron ore consumption,” another source said.
Market insiders and Chinese media sources inform that independent rolling enterprises in Fengrun district of Tangshan city will reduce operations during April 22-30 to cut emission level by 30% m-o-m.