The Oriental Morning Post reportsthat China's iron ore imports have rising a surprising 22.4% from the month before to 46.74 million tonnes in February, which comes against the backdrop of almost halving steel export from the year ago in the month.
Steelmakers and traders are adopting a 'bottom fishing' attitude on excessive optimism towards future economic outlook.
According to Mysteel senior analyst Mr Zeng Jiesheng domestic steel price have started to pick up after touching their bottom in mid-November and many mills have now achieved profitability and have begun to replenish their ore stock in the light of cheaper ore imports due to falling prices and freight cost. He said, however, that massive steel capacity utilization roars on despite the export plunge, and ore importers should be more cautious in purchasing iron ore given the grim economic outlook.
Source: Oriental Morning News/Steel Guru
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