Property moves cool iron ore prices
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Iron ore prices in China dropped from last week on concerns that government measures to cool the property market will curb demand, industry data showed yesterday.
Domestic prices of iron ore, a major steelmaking ingredient, in Tangshan, China's biggest spot market for the commodity, fell 6.4 percent to 1,310 yuan (US$192) a ton yesterday from a record 1,400 yuan on April 20, according to data from Beijing Antaike Information Development Co.
China, the world's biggest steel maker, unveiled a series of measure to cool its real estate market, which is expected to lead to weaker demand for construction and steel.
More banks have banned third-home mortgages and increased down payment and interest rates on second homes.
The prices of reinforced steel bars, used in buildings, fell for six straight days to 4,523 yuan a ton yesterday from 4,585 yuan on April 19, according to Antaike data.
Iron ore import prices averaged US$96.31 a ton in the first quarter, a jump of 20.7 percent from the same period a year ago.
Stockpiles of steel products in China surged 34.4 percent in the first quarter to 10.74 million tons, the China Iron and Steel Association said yesterday.
Fixed-asset investments in the steel industry topped 61.8 billion yuan (US$9.04 billion) in the first quarter, up 22.7 percent on an annual basis. The growth is 22.4 percentage points higher than the year ago level.
"The fixed-asset investment in the sector grew rapidly, and the fast growth is set to increase the total capacity of the industry and will worsen oversupply," the CISA said.
China's crude steel demand rose 21.9 percent in the first quarter to 153.3 million tons, driving up steel output. The crude steel production in the first quarter was "apparently too much," the CISA said.
