The sluggish demand for steel in Asia will slow the pace of recovery in iron ore prices in the fourth quarter.
Iron ore prices in Asia are expected to continue to decline in the fourth quarter as the cuts in steel production intensify in the winter season, while the hopes of recovery in demand have faded due to the downturn in the Chinese real estate market and the pandemic.
The cuts in steel production this winter due to environmental restrictions in China are likely to put the iron ore market under constant pressure.
With mills' margins falling for most of the quarter, demand for low-grade and discounted medium fine iron ore rose sharply as mills prioritized cost-effectiveness.
As the weather conditions improve for iron ore production in Brazil, shipments of Brazil cargoes to China, which usually contain low alumina and high silica, have increased sharply.
The difference between the 65% Fe and 62% Fe iron ore indices narrowed to $10.5/dmt.
Comments
No comment yet.