In a notable declaration, leading Chinese steel producer Baosteel has highlighted a divergence in iron ore prices from the underlying fundamentals of supply and demand dynamics. Expressing concern over this disconnect, Baosteel has advocated for a return to a more rational pricing range for iron ore. The company has called upon the collaborative efforts of the government, industry associations, and related enterprises to collectively address and temper the speculative fervor prevalent in the iron ore market.
Baosteel's commentary comes at a time when iron ore futures prices at the Dalian Commodity Exchange (DCE) experienced a noteworthy increase of 1.93 percent by noon on November 21, reaching RMB 978.5/mt ($137/mt). The steelmaker's assertion underscores the need for a recalibration in the market, aligning prices with the fundamental factors governing supply and demand.
The call to action directed towards government entities, industry associations, and associated enterprises reflects Baosteel's commitment to restoring balance and stability in the iron ore market. As the industry grapples with fluctuating prices, the cooperative efforts urged by Baosteel aim to mitigate speculative influences and foster an environment conducive to a more accurate reflection of supply and demand dynamics.
As the situation unfolds, stakeholders will be closely monitoring collaborative initiatives and policy interventions to ascertain their impact on steering iron ore prices back to a more reasonable and sustainable range. The current iron ore futures prices underscore the urgency of addressing the speculative aspects influencing the market, emphasizing the importance of a concerted approach to restore equilibrium in this crucial sector.
Vietnam Steel by Hoa Sen Group