China’s coking coal and coking coal prices fell more than 6% on September 14, the third consecutive decline due to concerns about the government’s output cut controls aimed at stabilizing prices and supply guarantee.
Data from the National Bureau of Statistics shows that In the first 10 days of September, coking coal and coking coal prices increased by 19% and 11.6% respectively compared to the last 10 days of August.
On the Dalian Commodity Exchange, the price of coke for delivery on the morning of September 14 fell 6.6% to 2,670 CNY (equivalent to 414.09 USD)/ton. Copper prices fell 2.5% to CNY 2,787.
Coke futures fell 2.8% to CNY3,427/ton, after falling 6.2% in the previous session.
On the Shanghai exchange, steel prices were also boosted by falling raw material prices. Used rebar price fell 0.6% to 5,654 CNY/ton.
Prices of hot-rolled coil, used in the automotive and home appliance manufacturing sectors, fell 1.3% to CNY5,799/ton.
Stainless steel futures on the Shanghai exchange fell 1.9% to 19,080 CNY/ton.
Iron ore futures on the Dalian exchange on September 14 fell 0.8% to 716 yuan/ton.
Iron ore with 62% iron content delivered to China on September 13 decreased by 4.5 USD to 127 USD/ton.
Iron ore prices fell 62% after the Yunnan provincial government required steel mills to adjust production plans to reduce output. Yunnan is a province that accounts for about 2.3% of China’s crude steel production. Along with the moves against steel companies, Yunnan also asked aluminum producers to keep output from September to December equal to or lower than August. The province also asked manufacturers to cement decreased by 80% compared to August.
China committed to adjust steel output this year no higher than 2020 to protect the environment. Therefore, this country has many policies to limit steel output this year, the latest of which is the move with Yunnan province.
In the face of developments in ore prices and China’s policies, Justin Smirk, senior economist at Australian financial institution Westpac, said there was a correction in his forecast for ore prices at the end of the year. “Iron ore prices have fluctuated over the last few months. There is clearly a shift in volume in the market that has forced us to revise our year-end price forecast from $175/ton to $125/ton,” said Justin Smirk. speak.
China’s southwestern Yunnan province asked local manufacturers to limit output of steel, aluminum and other materials. Part of the planned production in September will be postponed to the last two months of the year.
Source: VITIC/Reuters
T&G International Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 0345786803
Email: hrm@tginterjsc.com
Website: http://tginternationaljsc.com