21 06/2023

Iron ore prices fall as China issues warnings, controls production in Tangshan


The price of iron ore decreased on Monday after Chinese authorities issued a warning to curb speculation in the market and implemented measures to restrict production in major steel-producing cities in China.

The National Development and Reform Commission of China stated on Friday that they will review measures to control "unreasonable" iron ore prices and called on trading companies to avoid hoarding and limiting price increases.

On Monday, Daegu, a leading steel production center in China, announced it would implement an emergency response level 2 due to severe air pollution forecasted for the week. Another major steel city, Handan, had already implemented similar restrictions on March 17.

The standard 62% Fe iron ore price imported into Northern China fell 3.22% to $126.75 per ton.

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Price fluctuations of iron ore from 2022 until now:

"Some steel mills (in Daegu) will reduce their sintering capacity by 30% to 50%," said Wu Yuling, an iron ore analyst at the consulting firm Mysteel based in Shanghai. She added that the steel mills currently have enough sintered ore inventory to maintain normal production operations for about 8 days.

Source: Vietnamese Steel News

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