China’s stainless steel prices traded on August 31 up more than 4%, supported by strong nickel prices and supply concerns following controls on energy-intensive projects.
Nickel price traded on the Shanghai Exchange rose to a record high of 149,870 CNY (equivalent to 23,200.77 USD) per ton.
Analysts also said that six stainless steel producers in the Guangxi region have been asked to limit production as local authorities seek to control energy consumption and emissions.
However, they said the impact from the output control could be limited as seasonal demand has not yet picked up.
The price of stainless steel for delivery in October 2021 traded on the Shanghai floor increased by 4.1% to 18,500 CNY (equivalent to 2,859.97 USD)/ton.
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An active iron ore mine
In the latest trading session, stainless steel price increased by 3.9% to 18,455 CNY/ton. The price of rebar for January delivery increased slightly by 0.3% to 5,308 CNY/ton. Prices of hot rolled coil, used in the manufacturing sector, fell 0.2 percent to CNY 5,564 per tonne.
Besides, iron ore futures traded on the Dalian Commodity Exchange on March 31 fell 5% to 808 CNY/ton.
Dalian coking coal futures fell 1.0% to CNY2,460/ton, while coking coal rose 0.7% to CNY3,159/mt. The price of iron ore with 62% iron content increased by 2.5 USD
lên 158,5 USD/tấn.
Since mid-July this year, iron ore prices have fallen about 40% due to concerns about the demand of steel mills in China, especially as the billion-people country is producing more than half of its steel output. Around the world.
The shortfall of iron ore has dealt a blow to major iron ore mining countries such as Australia and Brazil, as they are scrambling to protect the economic recovery from the outbreak of the Delta mutation.
According to S&P Global Platts, in the session on August 19, the price of standard iron ore fell to 130.2 USD/ton. Moreover, on that day alone, ore prices evaporated 15%, also the deepest drop since November last year.
In the trading session on August 20, the price of iron ore recovered to 139.1 USD/ton, but still far from the all-time high of 233 USD/ton set in May.
Other commodities such as crude oil and copper also fell as investors worried that the Delta mutation could hinder the recovery of the world economy, but not as quickly as iron ore.
While iron ore is the world’s second-most traded commodity after crude oil, the mineral’s price is often more volatile than older commodities like oil and copper.
Morgan Stanley emphasized that iron ore prices have never surged at such an astounding rate since the market established a daily price pattern for this commodity 13 years ago.
“We were anticipating a correction in iron ore prices, as the current levels are too high but unsustainable. However, despite the precarious history of iron ore trading, we are a bit surprised that it has lost momentum. so fast,” Morgan Stanley said.
Source: VITIC/Reuters
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