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China Iron Ore Price to See Downward Risks, Steelease Says
Jun 24, 2015 14:25The price of iron concentrate in China’s domestic spot market is expected to head into declines this week, Shanghai Metals Market’s ferrous branch Steelease foresees.
SHANGHAI, Jun. 24 (SMM) – The price of iron concentrate in China’s domestic spot market is expected to head into declines this week, Shanghai Metals Market’s ferrous branch Steelease foresees.
Falling production at domestic steel mills and no price advantage over lumps will reduce demand for domestic iron concentrate, and this will put a downward pressure on its price, Steelease says.
Utilization rate at domestic steel mills has fallen to less than 86% due to growing facility maintenance, Steelease survey shows.
Moreover, some mines are forced to cut offers to repay loans due at the end of June as mills cut ore purchases after its price rose, Steelease points out.
However, tight supply of imported iron ore at ports will offer some support for domestic ore prices, Steelease adds.
Prices for domestic iron concentrate were mixed last week, varying from region to region.
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