Iron ore prices fell below $ 60 per ton

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Iron ore prices fell below $ 60 per ton

Post by weiyike on Fri Mar 13, 2015 3:28 am

Per ton of iron ore prices fell below $ 60 for the first time since 2009. At present, China has vowed to cut the steel industry overcapacity, and steel mills shut down in violation of environmental standards.
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Price reporting agencies "Steel Index" data show that Australia's benchmark iron ore CIF China March 5 fell $ 2.80, to $ 59.30 per ton. Chinese iron ore Dalian Futures Exchange futures prices fell 3.1 percent, to its lowest level since January 3.
For several leading mining giants - including Rio Tinto, BHP Billiton and Brazil's Vale - Iron ore is a key source of profits.
Chinese Premier Li Keqiang speech at the annual meeting of National People's Congress in Beijing, said the downward pressure on the economy are increasing, the government will cut excess capacity and solve the pollution problem. He will also China's economic growth target set at around 7%, the lowest level since 1999.
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China's steel industry association official said that this year the industry up to 70% of capacity can not meet the national environmental standards.
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According to Chinese media reports, this year, the Chinese Ministry of Environmental Protection in Linyi City, Shandong Province, Chengde City, Hebei Province, and were examined, ordered them to shut down the project in violation of environmental standards.
South Africa's Standard Bank data show that Chinese steel companies need capital expenditure of up to 100 yuan per ton, in order to avoid being shut down and meet the new requirements, even though they have to deal with poor liquidity conditions and meager margins difficult.
Last year, China's steel consumption in the first decline in 30 years, although exports of steel reached a record level.
While the environmental standards will be more stringent, but steel production did not relax signs. Standard Bank said in early February, China daily crude steel production increased by 8.14%, to 1.77 million tons, higher than the 2014 annual average daily production.
With later this year will have a lot of new supply entering the market, several of the largest iron ore producer, are preparing for further price decline.
Most of the profits from the force Billiton iron ore, will cut hundreds of jobs located in Western Australia's Pilbara iron ore. Its rival BHP Billiton has cut costs in Australia iron ore.

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