China largest steelmaker, Baosteel lifted its prices this week for the third month in a row even as it continued its acquisition and expansion binge, but authorities signaled that overall output growth in the sector was planned to slow this year. Another top-five Chinese steelmaker, Wuhan Steel and Japan Nippon Steel have also increased their prices in recent days.
Spot prices for high-grade Indian ore hit USD 200 per tonne this week and have already risen more than 12% this year after jumping over 40% last year. The higher prices will feed into the next quarterly contracts which use a weighted average from the previous quarter.
As well as higher iron ore prices, steelmakers have faced higher coking coal costs because of flooding in Queensland. Ironically higher steel prices will feed into Australian inflation as we buy back finished steel products from China, Japan and South Korea. But traders and mill staff predict that while high iron ore prices will continue for several months and they will fall back in the second half of the year.
(Sourced from www.theaustralian.com.au)
Tags:Wuhan Steel Group, Japan, Nippon Steel Corp, Spot iron ore prices, Spot prices for 63.5% Indian fines, raw material,