The Chinese iron ore market is relatively stable in the last week of August. Prices stay at the levels of a week ago. While exporters keep raising their offers, consumers refuse to accept further increases.
Chinese steelmakers are concerned about quite an indefinite situation in the market for finished products: although the largest producers have lifted prices for September output, end-users are showing little demand. Mills expect demand to strengthen in September, after the government takes measures to support main consuming industries.
However, iron ore price growth, based on optimistic sentiment in the segment for steel products, is no longer reasonable. Metal Expert estimates, iron ore prices will probably rise again when actual demand for finished steel firms in the domestic market, especially in construction as this sector is currently the weakest among the consuming industries.
In an event that the optimistic forecasts fail, iron ore prices will head down, falling by about $15-20/t.
The future trend will become clear in the first half of September, when most market players expect demand for finished steel to improve.
Indian 63.5% Fe ore concentrate is changing hands at $157-159/t c&f Shanghai ($135-137/t fob). At the same time, offers from some suppliers are coming at $160/t c&f.
Australian and Brazilian material is also offered at unchanged levels – $160/t c&f for Australian fines (61.5-62% Fe) and $170-172/t c&f ($147-149/t fob) for Brazilian ore (64-65% Fe).
( source: www.metalexpert-group.com )