Prices of iron ore and steel continued to fall in China today, with traders still worried by oversupply and unimpressed by the latest government efforts to stimulate construction demand in northeastern regions.
Reuters reported that China issued detailed new policy measures aimed at speeding up infrastructure investment in its struggling northeastern rust belt. While new road and rail projects in the region could stimulate steel demand, the policy wasn’t enough to breathe life into the stagnant iron ore market.
The steel billet cash price continues hovering around $420.00 per metric ton on the LME for the fifth day in a row. The 3-month price of steel billet saw little movement on the LME at $425.00 per metric ton.
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 ($136.72) and a low price of CNY 830.00 ($135.09) per dry metric ton. For the fifth consecutive day, the price of Chinese HRC held flat at CNY 3,380 ($550.13) per metric ton. For the fifth day in a row, the price of Chinese coking coal remained essentially flat at CNY 1,390 ($226.24) per metric ton.
The 3-month price of the US HRC futures contract held steady at $645.00 per short ton. The US HRC futures contract spot price saw essentially no change for the fifth day in a row, remaining around $675.00 per short ton.