Prices for seaborne iron ore concentrate fell, while pellet prices increased in the week to Friday September 3, but demand weakened over concerns about further steel production cuts in more provinces in China, sources said.
Fastmarkets iron ore indices
66% Fe concentrate, cfr Qingdao: $164 per tonne, down $1.97 per tonne.
Iron ore pellet premium over 65% Fe fines, cfr China: $33.70 per tonne, down $0.60 per tonne.
65% Fe blast furnace pellet, cfr Qingdao: $202.33 per tonne, up $4.19 per tonne.
Key drivers
Sources told Fastmarkets that there had been suggestions that the Chinese government could hold a meeting this week to discuss the impact of steel production cuts in certain provinces for July and August.
That could result in steel mills being required to meet annual production-cut targets by the end of November, followed by inspection in December, sources said.
A trading source in Shanghai said that this had prompted concerns about further steel production cuts in the coming months, depressing the iron ore demand outlook - especially for high-grade material - resulting in a fall in concentrate...