The series of holidays starting from 22nd September and National Holidays in first week of October in China has ensconced the market in slumber. Transactions are few and far between. It doesn’t seem unusual in the backdrop of truncated steel production in the aftermath of power cuts to enforce emission norms.
This receding commenced end August when the regional governments got hyperactive cutting power supply to manufacturing units. However it has been noticed that the decline has been gradual over the last fortnight. In fact the prices have remain dormant for the past 1 week at levels of USD 144 per tonne to USD 146 per tonne CNF main Chinese port for Fe 63.5/63% iron ore fines.
Despite news of production revival in Wu’an region of Hebei Province there is little chance that transactions would resume significantly since traders have opted for caution due to the uncertainty and holidays. It will be only after the National holidays that some change in dynamics can be contemplated.