China steel output key for iron ore, H2 decline may be limited

摘要

London—Chinese steel output in the second half of 2019 may be crucial in determining whether iron ore pricing remains close to multi-year highs or falls back, while recent historic trends could imply a limited decline for steel production, according to S&P Global Platts analysis Tuesday. Benchmark iron ore prices are expected to move lower during the second half toward marginal costs and average pricing pre- Vale’s dam burst, according to investment bank and industry analysts. BMO Capital Markets expects iron ore prices to weaken in H2, but remain above levels last year; Platts TSI IODEX 62% Fe averaged at $69.11/dmt in H2 2018 and $91.40/dmt in H1 2019.