Iron ore continued to rally from an 18-month low on rates basis. A stronger-than-expected cut in steel production this year means that China's steel mills are poised to increase production next month.
According to Fastmarkets MB, the 62% iron benchmark imported into North China changed hands at $ 99.83 a tonne, up 4.2% from Monday's close.
“The supply of iron ore hasn't changed much lately, but other businesses are planning to increase production next month,” said a trader from Beijing.
China successfully controlled crude steel production in January-October at a lower level than in the same period in 2020, after a series of tight restrictions and sluggish refining demand, which left the opportunity for steel companies to increase production for the rest of the year on a monthly basis. ...
Apparent demand for the five major steel products, including rebar, wire rod and hot rolled coil, has been increasing for two consecutive weeks and is up 4.2% last week compared to early November, according to consultancy Mysteel.
Iron ore prices rise in hopes of increasing steel production
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