SHANGHAI, Feb. 28 (SMM) – Iron ore prices in China’s market are expected to stabilize as a whole, and with price corrections in some regions, Shanghai Metals Market predicts.
"Supply of domestic ore remains tight now, and meanwhile, high profits at steel mills, exceeding 200 yuan per tonne or even higher, also increase their acceptance to ore prices," SMM iron ore analyst says.
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SMM survey finds that mines in Liaoning and Inner Mongolia are still unable to produce because of low temperatures. Mines remaining online in Shandong and Hebei are those that have not ceased production. Some small mines have restarted for high profits, but their contribution to total output will be extremely limited.
But, big price gains, driven by multi factors last week, will leave room for price corrections, SMM adds.
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According to SMM data, prices in Hebei advanced 30-120 yuan per tonne, and those in Shandong gained 60-85 yuan per tonne in recent two weeks.
Prices in some regions such as Hebei’s Handan and Xingtai may keep rising this week, though, following the Platts Index.
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