Steel prices in China continue rising as parity prices for iron ore are now estimated at $85/mt-$95/mt, per OCBC Bank.
Key quotes
“Iron ore inventories in China are now lower than last July’s low, when prices easily traded over $100/mt.”
“Steel inventories continue declining and we estimate it is expected to enter its 10-year range in the next 2- 3 weeks.”
“The market has firm fundamentals supporting its ascent and if the supply tightness continues, we might see iron ore making a run for $100/mt again.”
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