China iron ore prices up, coke pauses
Posted on 28 September 2021
Over September 22-24, China’s imported iron ore prices for both the physical and futures markets recovered from their multi-year lows on modest improvement in demand with domestic steel mills’ stocking up some quantities ahead of the National Day holiday over October 1-7, while the domestic spot coke prices paused from the surges since the late July as lower steel output had dampened demand, Mysteel Global noted.
Over September 17-23, blast furnace capacity utilization among China’s 247 steel mills under Mysteel’s survey had dipped to 82.06%, the lowest since July 2, after having declined for three straight weeks and at a faster pace too.
Iron ore: As of September 24, Mysteel SEADEX 62% Australian Fines recovered from slumps in the prior three weeks, reaching $109/dmt CFR Qingdao or up $8.8/dmt on week, and Mysteel PORTDEX 62% Australian Fines in Qingdao also regained by Yuan 56/wmt ($8.7/wmt) on week to Yuan 803/wmt FOT and including 13% VAT on the same day.
The most-traded January 2022 iron ore contract on the Dalian Commodity Exchange (DCE) rebounded from a three-week softening too, closing the daytime trading session of September 24 at Yuan 684.5/dmt, or up Yuan 40/dmt from the settlement price on September 17.
Coke: China’s national composite coke price under Mysteel’s assessment paused after eight consecutive weeks of strengthening, unchanged on week at Yuan 3,978.2/tonne including the 13% VAT as of September 24, as domestic steel mills resisted paying any higher with their softening demand in the long term even though some might still need to stock up some quantities ahead of the National Day holiday.
DCE’s most-traded January 2022 coke contract, eased for the second week by September 24, down another Yuan 15.5/t from the settlement price of September 17 to Yuan 3,197.5/t when the daytime trading session ended.Source : Mysteel Global