Chinese enterprises show interest in the iron ore market

Prices for iron ore in China continue to grow in a wave -like. Among analysts in the metallurgical industry, there is a belief that steel plants still contribute to prices that will be supported by real demand. Prices for steel in China rose by 1 percent and for some positions even more than 2 percent. This fully in July concerns long measures, which in turn causes revival of the mood in the iron ore market also.

Despite the fact that in June, iron ore imports were almost 9 percent less compared to MAI this year, which was expressed in a decrease by 62 million tons against the backdrop of production reduction in recent years. Nevertheless, since then, the demand for steel has changed for the better and prices have shown sustainability due to low inventory and increase in infrastructure and urbanization expenses.

Under the influence of universal approval in the iron ore market, a positive dynamics were created, in addition, based on the support of freight rates. The level of demand for iron ore over the past month has improved by 13 percent. At the same time, reserves in Chinese ports are at the proper level of 74 million tons.