IRON and STEEL
Chinese spot iron ore prices dropped to USD 99.15/MT, CFR China, as on 5th Aug’19. The prices fell as against USD 108.45/MT, CFR China towards last weekend.
The drop is attributed to reduced demand, increased supply and lowered construction activities in China. Vale, world’s largest iron ore miner resumed its Brucutu mines and Vargem Grande Complex easing global supply concerns. The spot iron ore prices have dropped to 2- months low levels as the prices were last seen towards early June.
The iron ore supply has improved in China amid increased domestic production and destocking activities. Also, thin steel margins have contributed to reduce in purchasing of ore. As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports increased to 121.05 MnT as on 3rd Aug’19 as compared to 119.25 MnT a week ago.
Dalian iron ore future fell yesterday
Dalian iron ore futures with January 2020 expiry, dropped by around 2.8% to 689 yuan/MT as against 704.5 yuan/MT assessed on Monday.
Last week’s U.S. President Donald Trump threatened to impose an additional 10% tariff on USD 300 Bn of Chinese imports from Sept. 1, increased concerns over steel demand. As a result, Chinese currency also depicted depreciation to all time low levels at USD equating to 7.0511 yuan.