Seaborne iron ore prices dropped June 29, as weak Chinesesteel...

Seaborne iron ore prices dropped June 29, as weak Chinesesteel demand weighed on iron ore demand outlook with the 62% Fe Iron Ore Indexat $214.10/dry mt CFR North China on June 29, down$5.95/dmt from June 28. Although the premiums for Pilbara Blend Fines remained firm, market participants turned more cautious due to safety and environment related steel output curbs in the north and east of China as well as weak downstream steel demand. Some sources attributed the consistently wide spreads between high, medium and low grade ores to the ongoing production curbs, tight supply of medium and high grade ores as well as sustained healthy steel margins previously. Although steel margins have weakened lately, the tight supply of high-grade fines persisted, supporting the spread between the 65%/62% Fe indexes. (Platts)

Premium hard coking coal prices on FOB Australia basisextended gains, with a fresh booking reported June 29 with Premium Low Vol up $3/mt to $189/mt FOB Australia and CFR China unchanged at $308/mt June 29. Market participants said the traded level was well anticipated as spot availability of coals remained under pressure. “It remains to be seen if the demand from international market, particularly from the European market, is sufficient to sustain spot prices,” a sell-side source said amid limited spot needs from Northeast Asia. (Platts)

Iron ore declined as investors weighed the impacts ofChinese steel output restrictions before the nation’s centenary celebration ofthe communist party. Mills in the Handan city in Hebei province, around Beijing in northern China, will halt sintering production from June 28 to 30 and output from some blast furnaces will be restricted, Mysteel Global reported, citing its own research. President Xi Jinping is set to deliver an address on July 1 to mark the event. “Some of the steel and coal sectors have restricted production for one to two weeks” as the anniversary nears, Huatai Futures Co. wrote in a note. “Looking forward, prices of iron ore will be at stake if steel capacity controls are strengthened later and the government put forward its plans for output curbs mentioned at the start of the year.” (Bloomberg)

Ratings agency Moody’s investors Service has warned major Australianresources companies their credit ratings could be downgraded if they fail tomaintain good relationships with traditional owners where they operate, sayingminer’s social license to operate is an increasingly important part of creditassessments. In a new report released on Tuesday, Moody’ssenior vice president Matthew Moore said the ratings agency was keeping a closewatch on the relationship between resources companies, traditional owners andcommunity groups for signs of fracturing relationships, even when minersbelieved they were operating strictly within the law.