Iron ore and steel prices in China fell on June 14, 2022, as a new Covid-19 outbreak in China raised concerns about falling demand in the world’s top steel producer.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange fell 1.9 percent to 903.50 yuan ($134.17) a tonne, after hitting its lowest low. in two weeks is 886 CNY/ton.
On the Singapore Exchange, the July contract for steelmaking materials fell 2.9% to $135.70 a tonne.
Beijing has been racing to contain an outbreak, with millions having to undergo Covid-19 screening tests and thousands of job interruptions.
On the Shanghai exchange, rebar prices fell 2%, hot rolled coil fell 1.9% and stainless steel fell 3.6%.
On the Dalian Exchange, the price of coking coal fell 0.4% and coke fell 0.8%.
In India, low demand in the domestic and international markets, combined with high-cost manufacturing processes, is causing some steel mills to consider cutting output.
Some primary steel mills are considering cutting output or closing facilities. Not only these home factories, some secondary manufacturers have also cut production.
A secondary producer in western India shared, up to now, their output in June has decreased by 5-10%.
Another enterprise in the East said that the steel price adjustment took place before the adjustment in raw material prices, resulting in a loss of Rs 2,000-3,000 a tonne, thus requiring a reduction in production during the period. short time.
Steel prices were recorded in adjustment mode before the government imposed export taxes, and this affected about 95% of exported steel products. After the government introduced the export tax, the price fell further.
But, according to the companies, users are still in tracking mode. There is confusion in the market that prices are going to drop, so customers are delaying purchases, and inventory is growing.
T&G Import-Export Joint Stock Company
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