SHANGHAI, May 5 (SMM) – China saw poor spot iron ore trades on the first day after a four-day Labour Day holiday, as stockpiles made pre-holiday deterred steelmakers from restocking.
A handful of sellers raised quotes for spot seaborne cargoes at ports by 5 yuan/mt today, while some sellers did not offer as the futures market shut for the weekend.
Prices of Tangshan steel billet gained 30 yuan/mt over the holiday.
Market talk suggested that steel mills in Tangshan may face strict implementation of anti-pollution output curbs for the non-heating season in May.
SMM learned that most mills currently hold operations unchanged from pre-holiday levels. Some mills plan to put their blast furnaces under maintenance in recent days, and this is likely to hurt demand for iron ore.