Chinese rebar and iron ore futures fell to record lows as weak buying activity and a poor outlook for demand growth for the two commodities by the world’s biggest consumer, China, dragged down their spot prices.
Spot iron ore prices have fallen nearly a third this year as an overhang of port inventories encouraged Chinese steelmakers to lower their stocks at plants, while China’s weak property sector has hampered steel prices, Reuters Africa reported.
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($134.87) and a low price of CNY 830.00 ($133.27) per dry metric ton. For the fifth consecutive day, the price of Chinese HRC held flat at CNY 3,380 ($542.71) per metric ton. For the fifth day in a row, the price of Chinese coking coal remained essentially flat at CNY 1,390 ($223.18) per metric ton.
Also on the LME, the cash price of steel billet remained essentially flat at $395.00 per metric ton. The 3-month price of steel billet was unchanged on the LME at $400.00 per metric ton.
The US HRC futures contract 3-month price ended a two-day climb, settling at $627.00 per short ton. The US HRC futures contract spot price showed little movement yesterday at $668.00 per short ton.