SHANGHAI, Feb 15 (SMM) – Poor downstream demand and higher inventories began to lower prices of iron ore on Thursday February 14, after concerns over Brazilian iron ore supply following the Vale accident buoyed rebar offers in the first three days of the week.
On February 14, national average prices of rebar slid some 24 yuan/mt to stand at 3,921 yuan/mt. Prices in the Nanjing market fell to 3,800 yuan/mt in the afternoon, and prices in Fujian and Fuzhou also decreased.
Average prices of rebar jumped to a month-high of 3,945 yuan/mt on February 13, following an increase of 48 yuan/mt from offers before CNY, to 3,922 yuan/mt on Monday February 11.
As of February 14, social and in-plant stocks of rebar increased by 4.69 million mt from Thursday January 31, the last week before CNY, and stood at 11.73 million mt. On the lunar calendar basis, inventories also grew 2.4% from a year earlier, SMM data showed.
SMM expects downstream construction sites to resume and improve rebar transactions from February 19.
