Ferrous markets continue to tumble on spectre of rising Steel output

UNITED KINGDOM May 13 2016 6:44 PM

LONDON (Scrap Register): Ferrous markets continued to tumble on the spectre of rising steel output. Though some large mills hiked offers or announced supportive measures such as floor prices, spot steel prices remained in free-fall, said the Steel Index. 

Spot billet prices in Tangshan fell RMB 50/t yesterday evening and RMB 70/t today, while spot rebar price lost RMB 100/t today. The futures slumped: The DCE iron ore futures lost 5.22% and SHFE rebar fell 4.61%. The spot iron ore market remained quiet. 

An Australian miner offered 61% Fe PB Fines in a tender for which no result was heard, and PB Fines basis 62% Fe privately against index later in the afternoon. There was a wide gap between other bids and offers. On COREX, Newman fines stood at 50.3/54.78; 61% Fe PB fines were offered at 52.5 without bid. 

A combi cargo of MAC and Yandi fines traded floating price. A Brazilian miner later sold 61.31% Fe fines on the same screen index-linked. In China, port stock prices lost around RMB 15/wmt. 

All prices US$/dmt CFR China.