Slumping Price
Iron ore with 62 percent content delivered to Tianjin port rose 0.4 percent to $93.70 a dry ton today, according to The Steel Index Ltd. Prices slumped 30 percent this year, dropping to $89 on June 16, the lowest since September 2012.
Should the same reforms in China that have pushed unprofitable steel mills to close are also applied to iron ore miners, it is likely that a number will close before the end of 2014, the bureau said. While this loss in supply should support prices later this year, it is unlikely to fully offset the substantial increase from Australia, it said.
China’s imports may rise 6 percent to 869 million tons this year and increase to 927 million tons next year, the bureau estimated. Previously it had forecast purchases of 872 million tons this year and 916 million tons in 2015.