May 28

Dalian iron ore hits over six-week low as China steel margins narrow

Chinese iron ore futures touched a more than six-week low on Thursday, as falling steel prices and slowing demand squeezed steel mills profitability, while regulatory concerns weighed on overall sentiment. The most-traded iron ore for September delivery on the Dalian Commodity Exchange fell as much as 4.8% to 985 yuan ($154.09) a tonne, its weakest since April 12. With steel margins now under pressure, we could see iron ore demand starting to soften, ING commodity strategists said in a
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May 28

Steel companies likely to add 29 million tonnes capacity in five …

Steel companies are looking to restart expansion projects on the back of surging steel prices. In the next five years, about 29 million tonnes capacity is likely to be added, with most of it expected by FY2024. JSW Steel is looking to add 14.8 million tonnes across Dolvi (Maharashtra), Vijaynagar (Karnataka) and at Bhushan Power & Steel facility in Jharsuguda (Odisha). Tata Steel has restarted its five million tonne expansion project at Kalinganagar (Odisha). Jindal Steel & Power
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May 25

China lands uppercut on iron ore prices, but no knockout blow

Its round one to China in its efforts to cool the red-hot iron ore and steel sectors, but victory in future rounds largely depends on making increasingly harder choices, and hoping factors beyond its control work in Beijings favor. The catalyst for the chill was reports that Chinas government will strengthen what it termed the management of commodity supply and demand to curb unreasonable increases in prices action that has so far seen the spot iron ore price retreat by almost 15%
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May 25

Chinese move to cool iron ore may be no bad thing

Steel makers in China have told Australias iron ore giants they expect the Chinese government will attempt to put the brakes on booming steel production in the second half of calendar 2021, mainly to cut the steel sectors carbon emissions. But rather than fearing such an intervention at a time of heightened trade tensions between Australia and China, local miners may be able to use it to their advantage. Demand from steel makers outside China is so strong that any slowdown in the Chinese
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May 25

Iron Ore Price Caves But Miners Remain Hugely Profitable, For Now

Chinese Government pressure on steel mills and commodity traders started to pay off earlier today when the iron price fell below $200 a ton for the first time in three weeks. But the fall to $197/t is unlikely to put more than a dent in the profits of the biggest iron ore miners which are producing the steel-making material at a cash cost of less than $20/t. Even after allowing for all costs companies such as BHP Group, Rio Tinto, Vale and Fortescue Metals, are still generating profits of
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May 21

Steel industry groups urge Biden to keep tariffs in place after EU …

U.S. steel industry groups and the United Steelworkers union on Wednesday urged President Joe Biden to keep in place the steel tariffs imposed three years ago, saying that lifting them now would undermine the industrys viability. In a letter to Biden just days after his chief trade negotiator struck a temporary tariff truce with the European Union, the groups argued that the Section 232 national security tariffs imposed by former president Donald Trump have been a success, leading to
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May 21

UK proposes three-year steel import safeguards extension only on …

The UKs Department of International Trade has published an intended preliminary decision to extend UK steel import safeguards and tariff rate quotas for three years from July 1 on certain product categories, including hot-rolled sheets and strips, cold-rolled sheets and rebars, where imports have been significant. Imports of other products deemed not to have been imported in significant quantities, or which are not produced in the UK or have not caused serious injury to domestic
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May 21

Chinas Steel Supply-Side Reform Targets Partially Met, Consolidation …

Fitch Ratings expects the consolidation of Chinas steel industry to accelerate and for facility upgrades to enhance energy efficiency in the next five years. Industry utilisation rates reached 80% in 2019 and 79% in 2020, up from 70% in 2015 and in line with Chinas 13th five-year plan target of 80%. This was despite higher documented steel capacity at end-2020, driven by strong demand. China has eliminated more than 150 million tonnes of undocumented sub-standard steel capacity since the
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