SHANGHAI, Nov. 25 (SMM) – Iron ore prices in China’s domestic market are expected to continue falling for the foreseeable future, Shanghai Metals Market foresees.
“Sluggish trading is intensifying the bearish sentiment in China’s iron ore market,” SMM iron ore analyst says.
Last Thursday, the Platts Index fell to $45.3 per tonne, and concentrates prices in Qian’an, Hebei province dipped to 370 yuan per tonne, and the DCE 1601 iron ore fell to 331 yuan per tonne.
“Cash crunch is pushing some domestic steel mills to the verge of bankruptcy, and a wave of steel-mill shutdowns may arrive in December,” SMM iron ore analyst points out.
Besides, arriving shipments of iron ore at ports will grow as the weather gets better, and this will bring total port inventories up from current 84 million tonnes to 90 million tonnes, a negative factor on price.
A further downward room for imported ore is also available, SMM adds.
Currently, FMG’s full cost has fallen to $38 per tonne, and is expected to decrease further by $1-2 per tonne after employing new Ore Processing Facilities and blending of ores at two of its mines. If the AUD depreciates further, its cost will fall another $1 to $35 per tonne.
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