International Steel Prices
February 25, 2014
Chinese Update: Iron Ore Bubble & Steel Export Offers
Written by John Packard
Steel Market Update has been in constant contact with one of our Asian trading sources who is a trader of iron ore to Chinese steel mills and exporter of finished steel out of China around the world. We have been discussing the iron ore “bubble” which continues to inflate and our source believes it will be only a matter of time before a correction – similar to 2012 – will occur. Current iron ore spot prices are $119.1 per dry metric ton (dmt) on 62% Fe having broken through the $120/dmt level for the first time since July 2013 according to The Steel Index (CFR Tianjin Port).
On Friday, iron ore stocks were reported to SMU to have been 100.91 million metric tons.
