China Steel Cuts Push Iron Ore Prices Down, Impacting Vale Shares
China’s recent mill cuts have lowered blast furnace operating rates to 89.08% and reduced daily pig‑iron output by 5,200 t. The seaborne benchmark fell to US$95.85/mt and onshore futures slid 1.71% to 718 CNY/mt. Vale’s shares fell to US$15.28, reflecting the weaker iron‑ore market.
China’s recent mill cuts have lowered blast furnace operating rates to 89.08% and reduced daily pig‑iron output by 5,200 t. The seaborne benchmark fell to US$95.85/mt and onshore futures slid 1.71% to 718 CNY/mt. Vale’s shares fell to US$15.28, reflecting the weaker iron‑ore market.
Short‑term, iron‑ore prices are likely to remain subdued as Chinese steel demand stays weak, tightening margins for steel producers and potentially prompting a temporary rebound in steel output once demand recovers. Traders should monitor Chinese mill activity for further price swings.