Texture from Argus:
“Steel mills in Tangshan have received the notice and started shutting down production. These set of restrictions are even stricter than the September restrictions,” said the manager of a Tangshan-based mill. “Restrictions will support steel prices. Iron ore demand may not fall significantly as sintering has been under controls of varying extents since the summer.”
“The downside risk to iron ore prices is limited,’ said the manager of a mill in Fengnan county, Tangshan. “Shipments from overseas mining companies are slowing and stocks of mainstream Australian fines at Tangshan ports are quite tight. Steel mills are anyway carrying low iron ore inventories so there is bound to be more buying over the next few days.”
