Cheeper IO = Cheeper steel = stronger Steel sales = Record rise in steel Production and IO used
Australian exports of iron ore to China surged 45.8 percent in April from a year earlier, customs data showed on Wednesday, with the country’s miners pushing ahead with expansion plans to meet demand from the world’s top consumer.
Monthly shipments imported by China from Australia reached 47 million tonnes in April, amounting to 56.4 percent of the total volume of 83.39 million tonnes, the second highest on record.
The rapid increase came amid weaker iron ore prices, with the country’s miners, including Rio Tinto (Xetra: 855018 – news) and BHP Billiton (NYSE: BBL – news) , all in the middle of plans to expand production capacity on expectations of rising Chinese demand
But Chinese mills are buying some iron ore cargoes after a recent slide in prices.
…”Since most of the mills haven’t really cut output, there’s no surprise that they are replenishing their inventory at lower price levels,” said a trader in Shanghai.
But tight liquidity and expectation that prices could fall further are limiting purchases to short-term needs.
AGO Price at posting:
75.7¢ Sentiment: Buy Disclosure: Held
