A total of 1,340,000 mt of iron ores was traded for the week ended Feb 5, down 22% as compared to previous week.
During the week, most end-users were heard to complete their restocking activities, though the demand for post-Lunar New Year holiday remained high, as market participants expected the Beijing policymakers to introduce some stimulus measures for Q2.
So far, PBF accounted the largest market share at 33% for the week, then it was followed by Yandi fines at 21%, and finally by JMBF at 15%.
Good demand for March cargoes on higher steel demand
The demand for March cargoes were generally positive on good steel demand, despite most of the mills have completed their restocking needs.
However, some trade participants expected portside prices to remain higher than their seaborne equivalents in post-Lunar New Year holidays.
Meanwhile, some market participants urged cautions for high steel demand after the Spring festival holidays, as Chinese authority might implement measure to reduce steel output to comply with stricter environmental regulations.
Stable steel prices for Lunar New Year holidays
Due to upcoming Spring festival holidays, some steel mills chose to lock product prices to prevent market volatility.
For instance, the country’s largest private rebar supplier, Shagang Group had previously locked in their rebar prices in mid-January, ahead of the Lunar New Year period.
However, some market participants expect further corrections in steel prices in near term, due to the high steel stockpiles among traders and mills.
