Surging iron ore prices have narrowed steelmaking margins in China, though the country's long steel producers are unlikely to lower their prices anytime soon to stimulate sales, sources told Fastmarkets MB this week.
Market participants estimated at the start of this week that rebar producers' gross profits had fallen below 500 yuan ($72) per tonne, compared with 700-800 yuan per tonne in early May, due to the higher prices for steelmaking raw materials such as iron ore and coking coal. Iron ore prices are likely to maintain an upward trend due to supply shortages attributed to Vale's production woes that emerged after one of its tailings dams suffered a deadly breach in late January, market sources said."Iron ore prices are at five-year highs, but they will still see increases in the coming one month due...