Steel prices today increased to 5,742 yuan / ton on the Shanghai Exchange. The outlook for iron ore prices has deteriorated as China cuts steel output and ramps up decarbonisation.
Steel prices continue to increase today
Steel price today delivered in January 2022 on the Shanghai Exchange increased by 93 yuan to 5,742 yuan/ton at the time of the survey at 9:45 am (Vietnam time).
| Type name | Period | October 8 | Difference from yesterday |
| Copper price | Delivered in November 2021 | 67.170 | +1.000 |
| Zinc price | Delivered in November 2021 | 22.895 | +340 |
| Nickel price | Delivered in November 2021 | 141.590 | +3.770 |
| Silver price | Delivered in December 2021 | 4.789 | +152 |
| Steel price | Delivered in January 2022 | 5.742 | +93 |
Iron ore chart at Shanghai exchange (Source: Shfe)
During August, iron ore prices fell sharply after China called for a limit on steel output and sought to cool prices in the metal market, and introduced policies to reduce pollution from the steel industry.
As of mid-September, the price of S&P Global IODEX 62% Fe has dropped by about $100/ton to as low as $94/ton. Similarly, the price of NYMEX 62% Fe also dropped to nearly 100 USD/ton.
Previously, these two types of iron ore were trading above $200/ton until the end of July, partly due to a sharp increase in Chinese steel production in the first half of the year amid economic growth of 12.7. %.
“The market will see iron ore struggle and prices will soon return to around $100/ton,” said Tom Price, Head of Commodity Strategy at Liberum Capital.
S&P Global Market Intelligence has cut its fourth-quarter iron ore price forecast to $110 a tonne. Previously, this forecast was 145 USD/ton.
“The outlook for demand and prices is much weaker,” said S&P Global Market Intelligence analyst Ronnie Cecil. Prices are likely to continue to fall as iron ore production typically increases in the second half of the year.”
In the context of China’s iron ore demand falling, Mr. Cecil said, the price risk will decrease. Liberum analysts have a similar view, saying that iron ore prices could fluctuate around $90/ton in the next few months.
Photo: Steel Times International
As for the outlook for 2022, analysts said, they mainly expect iron ore prices to remain as low as $100 a tonne, although iron ore supply shocks could add to it. movement.
Very Independent Research analyst John Tumazos raised expectations that China’s steel production curbs will remain in place until 2022, and this is consistent with the aim of keeping output low in 2022. , setting the stage for a recovery in 2023, 2024.
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