SHANGHAI, Jul. 2 (SMM) – A recovery in the price of iron ore in China’s domestic market is expected in July, Shanghai Metals Market’s ferrous branch Steelease foresees.
Falling supply and the easing of liquidity conditions are major favorable factors for iron ore prices, which fell sharply in June on muted volumes.
In June, total concentrate supply was down 1.23 million tonnes and a full 3.35 million tonnes from the same time last year. Some iron mines in operation refused to sell goods at loss-making prices, Steelease learnt.
Besides, Premier Li Keqiang underscored in remarks at a recent conference in Europe that China’s economy will maintain a mid-to-high rate of growth. That being said, GDP growth fell below targets in both Q1 and Q2, so Steelease expects new stimulus policies to reinvigorate demand heading into Q3.