SHANGHAI, May 23 (SMM) – China’s iron ore were mixed in the week ending May 19, and what’s price outlook for this week?
Iron ore prices in China’s domestic market are expected to advance this week, Shanghai Metals Market predicts.
At present, profits from rebar at mills are on the rise along with supply shortages and stagnating raw material prices. Supply tightness of rebar will support profits at highs in the short term, but profits may be squeezed as high margins will allow steel mills, which may have seen current profits overdone, to accept price gains of raw materials.
Moreover, demand from steel mills is stable due to high utilization rates at blast furnaces. Steady demand will highlight supply tightness of domestic ore following environmental protection inspections at SMEs mines in many regions.
With the nearing of Dragon Boat Festival from May 28-30, steel mills, holding low ore inventories, are expected to enter the market for raw material purchases, which will also support ore prices.
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