CRU: Upward Iron Ore Price Momentum Halts, But It Could be Temporary

By CRU Senior Analyst Dmitry Popov, from CRU’s Iron Ore Market Outlook

After two weeks of increases, iron ore prices moved marginally lower this week by $1 /t w/w as CRU has assessed the 62% Fe fines price at $89 /t, CFR China. The end of the upward momentum in iron ore prices was primarily the result of the change in direction in Chinese domestic steel prices over the past week. Following the sharp increases through November for both rebar and HR coil, over the past week rebar prices declined by 2.2 percent w/w, while HR coil prices remained unchanged w/w. These changes were mainly the result of weakening construction activity in northern China due to cold weather, as well as rising supply.