China smelter group agrees to lower Q1 copper charges
The charges tend to fall when ore supply declines and rise when more concentrate is available.
Iron ore prices were mixed on Wednesday while a China steel industry group urged producers to curb output to stay afloat.
Steel prices in China have sunk amid a disappointing pace of recovery in demand, posing challenges to the industry, according to the China Iron and Steel Association.
The group has urged producers to cut output to help ensure a stable cash flow.
Already, more than 30 steel mills have issued plans for maintenance as of Tuesday, according to industry consultancy and data provider Mysteel.
Benchmark 62% Fe fines imported into Northern China rose 2.74%, to $106.32 per tonne.
In contrast, the steelmaking ingredient’s most-traded September contract on China’s Dalian Commodity Exchange ended daytime trade 0.4% lower at 716.50 yuan ($103.52) a tonne.
Even if the Chinese appetite for steel products improves later this year, iron ore will remain weak “for a long time” because of the government’s policy to curb output, Huatai Futures analysts said in a note.
China is considering limiting its steel output this year, according to analysts and recent unconfirmed reports, extending a two-year-old policy aimed at curbing emissions by the world’s largest steel producer.
(With files from Reuters)
