SHANGHAI, Oct. 21 (SMM) – The price of domestic iron ore across China’s major markets is expected to fall this week, Shanghai Metals Market’s ferrous branch Steelease foresees.
Liquidity tightness at steel mills and growing inventories at domestic iron mines and will depress domestic iron ore price, Steelease says.
The delay of payment by downstream buyers and difficulties in securing bank loans have combined to tighten cash flows at steel mills, Steelease learns, which will refrain them from building large stocks of raw materials.
Moreover, steel mills in north China increased purchases of imported ore following its price declines, reducing demand for domestic goods.
Last week, the price of domestic iron ore edged down in major markets. The price in Hebei and Liaoning fell by 5-10 yuan per tonne and 10 yuan per tonne, respectively, Steelease data show.
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