ArcelorMittal says dissident workers still protesting in Mexican plant
ArcelorMittal announced on Thursday the end ofthe blockade at its facilities in the southern state of Michoacan.
The benchmark CFR import price of 62% iron ore fines at China’s Tianjin continued to climb on Wednesday, reaching $158.90, the highest since mid-October 2011.
The steelmaking ingredient has been boosted by restocking by Chinese steelmakers – responsible for more than 60% of global consumption – and a draw down of inventory at the country’s ports.
Stockpiles of iron ore fell to a 3-year low this week of 66.8 million tonnes, down from highs above 100 million tonnes last year.
China’s daily crude steel output rose 4.6% over the first 10 days of February to just under 2m tonnes per day.
Number 3 producer of iron ore BHP Billiton said in its results presentation yesterday that customer inventory cycles are now significantly impacting the market price:
However, the company also warned that the cost curve for iron ore will flatten as substantially more low cost supply is under construction meaning prices will revert to mean.
