From Reuters:
Chinese steel producers are selling iron ore cargoes arriving in July under their long-term contracts with miners and using the cash to buy cheaper iron ore sitting at China’s ports, said a trader in Shanghai.
“We’re doing this business now with mills who are trying to sell their long-term cargoes that are index-based and are more expensive than those at the ports,” he said.
Australian 61-percent grade Pilbara iron ore fines are currently trading at around 600 yuan a tonne at China’s Shandong port, or about $82-$83 excluding port charges and taxes, he said. That compares to a price of $93 per tonne for a new seaborne cargo of the same grade on Monday, he added.
…”It’s quite tough on the ground. There’s still too much cargo available and mills don’t want to chase prices because they’ve got plenty of buying options,” said another Shanghai-based trader.
