Iron ore price rises on China’s record crude steel monthly output

Steel mill. Reference image from Wikimedia Commons.

Iron ore price rose on Thursday, buoyed by data showing a record monthly output of crude steel and as China said it sees room for further growth in demand.

The world’s top steel producer churned out 99.45 million tonnes of crude steel in May, data from the statistics bureau showed.

Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were up 3,14%, changing hands for $220.82 a tonne, according to Fastmarkets MB.

At a briefing on Thursday, the state planner said with the development of China’s economy, demand for crude steel still has room to grow during the 14th Five-Year Plan.

Meanwhile, analysts with SinoSteel Futures warned that there is limited room for further growth in iron ore demand.

“Environmental protection measures in Tangshan have not been relaxed in the short term and have become more stringent,” SinoSteel said in a note.

China said on Wednesday it would release the country’s reserves of major industrial metals, including copper, aluminium and zinc in batches “in the near future.” 

The country’s stockpiling body – China’s National Food and Strategic Reserves Administration – said the move would ensure the supply and price stability of bulk commodities. 

(With files from Reuters)