Prices for physical iron ore retreated further on Wednesday January 17 amid concerns of a weakening Chinese steel market, and along with them, margins.
Key driversPrices for both seaborne iron ore and port materials declined, tracking the general downtrend in the paper market for most of the day, though the benchmark contract for iron ore picked up just before the close of the trading session.China's spot prices for hot-rolled coil also fell 20-60 yuan ($3.10-9.30) per tonne, although those for rebar rebounded by 20-40 yuan per tonne.The declining prices in the steel market over the past month have reduced steelmaking margins to around 300 yuan per tonne for mills in north China, though their counterparts down south could be somewhat better off, according to sources.This has resulted...