|
UMETAL-CHINA, The Ministry of Finance and the
State Administration of Taxation on June 22 announced that China
will remove tax rebates on 48 steel products from July 15. The
cancelation covers hot-rolled steel coil, sections, some narrow
cold-rolled coil products and hot-dipped galvanized coil. About
40% of steel exports will take a blow for the first five months.
Affected by the move, imported iron ore market in China was
extremely weak this week. Iron ore buyers who showed interest
before rapidly walked away from the market, leading to a
reduction in transactions. And iron ore prices also consequently
drifted lower. Prices of Indian iron ore fines (Fe63.5%) again
dropped below US$150 per tonne CIF, with a low of US$147-148 per
tonne.
According to China Customs statistics, iron ore imports from
Brazil to China were only 8.33 million tonnes in May, down as
much as 30% from a month earlier. The figure hit a 14-month low.
Notably, EU produced 16.31 million tonnes of crude steel in May,
the highest since the financial crisis. In particular, Germany,
the largest customer of Vale SA, produced 4.07 million tonnes of
crude steel in May, meaning that this country has almost resumed
production. Hence, Brazilian iron ores were partly shipped to
non-China countries. Meanwhile, eastern ports were shut down in
India because of rainy season, resulting in supply tightness.
The closure of Indian ports will last until September. Given the
situation, iron ore will be in short supply despite weak demand.
( US$ 1 = RMB 6.7905; Contributing by Hu Kai; Compiling by
Zoe Liao )
Sales Prices of Imported Ores at main China Ports
|
Price (RMB/WMT)
Tax included |
Port Tianjin |
Port Qingdao |
Port Lanshan/Rizhao |
Port Beilun |
|
Price |
Change from last week |
Price |
Change from last week |
Price |
Change from last week |
Price |
Change from last week |
|
Indian
fines 64% |
- |
- |
- |
- |
- |
- |
- |
- |
|
Indian
fines 63.5% |
1140 |
-20 |
1140 |
-10 |
1140 |
-10 |
- |
- |
|
Indian
fines 62% |
1060 |
-20 |
1050 |
-20 |
1050 |
-20 |
- |
- |
|
Indian
fines 58% |
820 |
-30 |
820 |
-20 |
820 |
-20 |
- |
- |
|
Brazilian iron ore concentrate 67% |
- |
- |
1280 |
-20 |
1280 |
-20 |
1280 |
-20 |
|
Brazilian fines 65% |
- |
- |
1240 |
-20 |
1240 |
-20 |
1240 |
-20 |
|
Canadian
pellet 66% |
- |
- |
1370 |
-10 |
- |
- |
- |
- |
|
MAC lump
62% |
- |
- |
1340 |
-20 |
1340 |
-20 |
- |
- |
|
PB fines
62% |
1160 |
-10 |
1160 |
- |
1160 |
- |
1160 |
- |
|
Yandi
fines 58% |
- |
- |
1030 |
-10 |
1030 |
-10 |
1030 |
-10 |
|
Robe
River fines 56% |
- |
- |
930 |
-10 |
930 |
-10 |
- |
- |
|
