February 2009 | Steel Raw Materials
Iron ore prices lose footing: Iron Ore Highlights
The bloom is off the Chinese steel markets as all optimism following the New Year celebrations has now eroded.
The bloom is off the Chinese steel markets as all optimism following the New Year celebrations has now eroded. There was speculation that Beijings stimulus package would provide enough domestic steel demand to support higher prices and stronger steel production. In January 2009, there was already an uptick in hot metal and crude steel output from the month before in anticipation of renewed demand. Chinese iron ore prices reflected those gains while demand languished in all other regions. Imports from India and Brazil jumped in January, up 22% year-on-year and 38% month-on-month for material from India.
Alas, steel exports remain under pressure and the boost in domestic demand from the stimulus is not nearly enough to compensate for the fall in export tonnage. Domestic steel prices have now fallen strongly over the past week. And as a result, steelmakers are rethinking their production plans going forward. Iron ore...
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