Strong price run continues

摘要

Seaborne iron ore prices continue their strong run, staying around the $170/mt CFR mark for most of January. China's crude steel production has started the year strongly, up 10.4% on year over Jan. 1-10, according to the China Iron & Steel Association. Finished steel prices are coming under pressure with some rebar producers barely at breakeven due to slower construction activity. Many migrant workers have already returned to their home towns ahead of the Lunar New Year. Overall enduser demand will start to slow in the run up to the holidays. Offsetting this will be the usual slower iron ore exports in Q1 due to wet weather in Australia and Brazil and in the wake of the big effort to maximize exports before the end of 2020.