Foreign iron and steel prices on June 9 increased sharply

Iron ore prices today (June 9) reversed to rise again after the previous three consecutive declines, with the reference iron ore futures contract rising sharply by 5.4% due to concerns about supply.

Foreign iron and steel prices increased sharply on June 9 due to concerns about iron ore supply

Foreign iron and steel prices increased sharply on June 9 due to concerns about iron ore supply

Iron ore for September term on Dalian bourse ended June 9 up more than 4% to 1,175 CNY ($183.78)/ton, in one session reaching 1,191.5 CNY/ton.

Similarly, the price of iron ore on the Singapore floor also increased by 1.5% to 203.65 USD/ton.

Iron ore prices recently, despite a few sessions of decline, generally maintained an upward trend, despite the commitment of Chinese policymakers to step up monitoring of commodity prices as well as control. market.

The reason is that the market is still concerned about the supply of this steelmaking material, when the price of imported ore 62% (spotted at Chinese seaports) on June 8 increased to 209 USD/ton, the highest since June 8. from May 19, according to SteelHome data.

According to metals data provider SMM, iron ore inventories at China's ports fell to 127.65 million tonnes in the past week, the lowest since February 5, while port arrivals also fell. compared to last week's arrivals and down from the same period last year.

Iron ore inventories in China's seaports are at the lowest level in 4 months

Iron ore inventories in China's seaports are at the lowest level in 4 months

Iron ore imports from Rio Tito - the world's leading iron ore miner - have decreased, while Brazil's Vale SA is disrupting production at two mines due to safety concerns, leading to Vale's output is down by about 40,000 tons per day.

"(Vale) shuts down this week then we'll start to see the impact next week," said RBC Capital Markets mineral analyst Kaan Peker.

"We expect imports from Brazil and Australia (to China) to decrease (month-on-month)," he said, adding that Indian production was also "affected by the heavy rain. ".

In fact, China's iron ore imports have only decreased since May, and have continued to increase in the previous months. In the first 5 months of 2021, China imported 471.8 million tons of iron ore, up 26.9 million tons (6%) over the same period last year.

On the demand side, some analysts say the outlook for China's steel products remains bright despite a drop in May trade data, citing a solid global economic recovery that is likely to take place. promote the export of Chinese goods.

Steel prices today also simultaneously increased. Accordingly, rebar on the Shanghai floor increased by 1.3% compared to yesterday, while hot rolled coil increased by 2.1% and stainless steel also increased by 2.1%.

Coking coal and coking coal - other raw materials in steel production - increased 2.3% and 4.2% respectively compared to the previous session.

Google Tech News

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