SHANGHAI, Dec. 13 (SMM) – China’s iron ore prices are expected to advance due mainly to strong demand, Shanghai Metals Market predicts.
Last week, domestic concentrates prices were mixed in major trading markets, with declines in Tangshan, increases in Handan and Xingtai, and stable in other regions, according to SMM data.
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“The surge in steel price after news of closures at intermediate frequency furnaces in Tangshan will buoy up ore prices, and higher utilization rates at online mills will also grow ore demand, boding well for ore outlook,” SMM iron ore analyst says.
Meanwhile, inventories of domestic ore are at a record low, and as domestic ore are more cost-efficient than imported ore, domestic steel mills show strong demand for domestic ore.
Moreover, domestic steel mills will enter the market for winter stockpiling with nearing of 2017 New Year and 2017 Chinese New Year holidays, and colder weather, to maintain normal production.
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