Iron ore prices fell on rising shipments from major suppliers. This is according to data from Mysteel consultancy. The data showed that Iron ore shipments from Australia and Brazil stood at 26.14 million tonnes last week, up by 1.1 million tonnes from the week earlier. According to Fastmarkets MB, Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were down 3.2%, changing hands for US $214.08 a tonne.
The most actively traded iron ore futures on the Dalian Commodity Exchange, for September delivery, fell 1.5% to 1,198 yuan ( US $187.26) per tonne at close. Demand for the steel making ingredient has been supported by robust production at mills as the sector enjoyed decent profit margins.
China’s crude steel output last month hit a record at 99.45 million tonnes, data from the National Bureau of Statistics showed. However, analysts from SinoSteel Futures warned that there is limited room for further growth in iron ore demand.
Release state reserves
“Environmental protection measures in Tangshan have not been relaxed in the short term and have become more stringent,” said SinoSteel.
China through the China’s National Food and Strategic Reserves Administration announced it would release the country’s reserves of major industrial metals, including copper, aluminium and zinc in batches in the near future. The move would ensure the supply and price stability of bulk commodities
“We haven’t seen the country release state reserves for years. This will boost short-term supply, sending a bearish signal to the market,” said Jia Zheng, a commodity trader with Shanghai Dongwu Jiuying Investment Management Co.