The iron ore prices inched up today after few Chinese mills rushed up to take advantage of the previous drop in steelmaking raw material price.
The 62% graded iron ore on Chicago Mercantile Exchange rose 0.21% to trade at US$ 98.59 (as on 30th May 2019 AEST 6:27 PM), as compared to its previous close of US$ 98.38.
Tioc1 Daily Chart (Source: Thomson Reuters)
The market participants are expecting the iron ore prices to inch up further amid supply shortage in the global market and a decline in steel inventory in the domestic market of China.
As per the data, the steel inventory in China declined to 12.66 million tonnes (as on 24th May 2019), down by 3.83% as compared to its previously reported level.
Apart from a decline in inventory, few mills in China entered the period of maintenance. Hunan Valin Iron & Steel, a state-owned mill in China has decided to put the production of all lines of the cold-rolled coil into maintenance from 1st June to 10th June. The production loss due to upcoming maintenance is expected by the market to be at 50,000 metric tonnes of the cold-rolled coil and an estimated production loss of 50,000 metric tonnes of rebar steel.
The share prices of significant Australian miners such as Rio Tinto, BHP Billiton, Fortescue Metals, witnessed a drop in the share prices today.
The share prices of Rio Tinto (ASX: RIO), which were previously hovering around its 52-week high dropped significantly from the level of A$104.530 (Day’s close on 29th May 2019) to the level of A$101.050 (Day’s low today). The shares ended the day’s session at the low of the day at A$101.050, down by 3.329 per cent as compared to its previous close.
Another mammoth miner, BHP Billiton (ASX: BHP), a company with high ESG consideration, followed the same trajectory, and the share prices dropped from the level of A$38.560 (Day’s close on 29th May 2019) to the level of A$37.650 (Day’s low today). The shares ended the day’s session on a negative note at A$37.700, down by 1.721% as compared to its previous close.
The share prices of Fortescue Metals Group Limited (ASX: FMG), dropped from the level of A$8.520 (Day’s close on 29th May 2019) to the level of A$7.970 (Day’s low today). The share prices of the company ended the day’s session at A$7.980, down by 3.739% as compared to its previous close.
However, the prices of few miners traded higher on ASX
The share prices of companies such as Mount Gibson, Champion Iron traded on a positive note.
Mount Gibson Iron Limited (ASX: MGX): The shares prices of the company started the day’s session at A$1.24, higher than its previous close of A$1.235. The shares made a high of A$1.260, before settling at A$1.250, up by 1.22% as compared to its previous close.
Champion Iron Limited (ASX: CIA) : The share prices of the company started the day’s session higher from its previous close of A$3.06 at A$3.18. The prices surged on ASX to mark a high of A$3.250, before closing at A$3.200, up by 4.58% as compared to its previous close.
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