Steel prices in China simultaneously fell

Rebar, which is used in construction, for May delivery fell 2% to 685.6/ton.

One of the reasons pushing up ore prices was the news that China increased imports in November.

Iron ore for delivery in northern China rose nearly 25% in three weeks on an upbeat outlook for steel demand in 2022.

Specifically, 62% Fe ore on December 8 traded at $108.6/ton compared with $87 on November 18 - the lowest level since May.

Price movements of 62% Fe ore imported into northern China. Source: Mining.com

Despite the increase, the price of this commodity is still far from the record figure of 235.6 USD/ton recorded on 12/5. The developments in the market have led industry experts to think that the low period of steel production materials is over.

One of the reasons pushing up the ore price is import information from the General Administration of Customs of China. According to the agency, China imported 105 million tons of steel in November, up 14.6% from October and the highest level since July 2020.

Another factor is the increased demand for ore. However, industry experts are questioning whether this demand is from factories or traders who are hoarding because prices have dropped after a record high in May. more ore is low because these facilities are still cutting production to meet environmental and energy use requirements.

Port inventories in China have also steadily increased in recent weeks, reaching 154.4 million tonnes in the week ending Dec. 3, according to data from SteelHome. In June, inventories at ports were very low, only 124 million tons.

Signs in the market suggest that steel demand may recover in the first half of 2022, based on expectations that China will conduct a stimulus round to boost economic growth.

NDH