Global iron ore market to keep cooling down

摘要

A price increase in metallurgical markets slowed down in September. After surging to their record high, Australian iron ore quotes to China fell to some $115/t CFR (62% Fe). Domestic finished steel prices went up less significantly than raw material quotes, so Chinese producers' margins halved over the reporting month. Metal Expert estimates domestic sales profitability hit its minimum of the past five months. As a further rise in finished product prices will be curbed by high supply, steelmakers will most likely seek to restore their margins by exerting pressure on raw material suppliers.