Chinese Planning Institute: $60/Ton Floor for Chinese Iron Ore in 2015

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A leading Chinese steel industry body predicts a modest increase in steel demand for 2015 as economic growth slows down in China, according to Caixin.

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The China Metallurgical and Industry Planning and Research Institute believes demand for steel products will reach 720 million tons next year, up 1.4%  from this year. At the same time, the steel industry will produce 834 million tons of crude steel, an increase of 1.71% from 2014.

The institute also predicts China will import 1 billion tons of iron ore next year, an increase of 6.4% from 2014. The head of the institute and the deputy chair of the government-backed China Iron and Steel Association, Li Xinchuang says he thinks $60 per ton would be the floor price for iron ore.

Chinese slab saw a 9.1% increase on Wednesday, December 3, reaching CNY 3,350 ($544.94) per metric ton and making it the biggest upwards shift of the day. Chinese HRC prices inched up 1.3% to CNY 3,160 ($514.04) per metric ton. Following two days of downward movement, the price of Chinese coking coal held steady at CNY 1,080 ($175.68) per metric ton. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($136.64) and a low price of CNY 840.00 ($136.64) per dry metric ton.

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The steel billet cash price held steady on the LME at $500.00 per metric ton. The steel billet 3-month price was unchanged on the LME at $480.00 per metric ton.

The spot price of the US HRC futures contract declined 0.2% to $630.00 per short ton. The US HRC futures contract 3-month price saw little movement yesterday at $625.00 per short ton.

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