Tangshan steelmaking iron price breaking RMB3800/t mark

BEIJING (Asian Metal) 14 Jan 11 – Steel plants are eager to purchase raw material as it enters into mid-January. Pig iron market flunctuates in line with market conditions as prices of iron ore and coke keep rising these days and iron prices rise significantly. As for iron market in Tangshan, most steel plants raise pig iron price by RMB50-60/t this week to maintain normal production. Even so, the supply of the material keeps tight and some steel plants are likely to raise the purchasing price further.

A source from a Tangshan-based iron plant stated that iron prices increase this week as the supply keeps tight and buyers are eager to make purchases. Moreover, consumers come to accept the current high prices, so it is relatively easy to make deals. The plant is still supplying liquid iron to some regular customers this week and the rest of the material can be processed into iron lump. The current price of liquid iron is above RMB3,500/t whilst that of iron lump is above RMB3,700/t and the market is likely to keep strong before the Lunar New Year. 

A source from a Fengrun-based iron plant disclosed that the purchasing price of pig iron in Tangshan increases this week.Since the plant is still executing some previous orders, the purchasing price of pig iron keeps firm at RMB3,780/t and can not find materials below the price. The source added that the purchasing price for pig iron in Tangshan is running at a high level.It is reported that the mainstream price has broke RMB3,800/t mark with the maximum price at RMB3,850/t. Steel billet prices continue to rise in the recent two days, so he expected that pig iron prices will run at a high level before the Lunar New Year.

A source from a steel plant at Jingtang Port stated the plant’s purchasing price of pig iron is RMB3,800/t VAT included EX works, up by RMB50/t compared with that of last week and they will keep adjusting the price in accordance with delivery and consumption. Until now, downstream steel billet market keeps active, which is likely to bring up pig iron prices.

The supply of steelmaking iron keeps tight in Tangshan this week and prices of iron ore and coke keep firm, so some traders are optimistic with the market. Moreover, the supply of of high-quality steel scrap is extremely tight, which bring up steelmaking iron prices significantly. At the same time, steel plants’ inventory can maintain production for 6-7 days compared with 4-5 days at the beginning of month and they are still eager to stock up with the material with the price breaking RMB3800/t mark. It is expected that steelmaking iron price is still likely to rise slightly.