by Chris Becker

August 1st iron ore prices:

Spot iron ore prices at Qingdao port rose 0.8% to $68.19 a tonne, but the Tiangin price was off 2% in line with other commodities as markets weight up the fallout in the increased US tariffs. .

Rebar prices were raised again locally with steel mills lifting prices across the Middle Kingdom.

From Metal Bulletin:

China’s domestic rebar prices increased again on Wednesday August 1 after steel mills raised their list prices for the long steel product.

Domestic Eastern China (Shanghai): 4,230-4,280 yuan ($620-627) per tonne, up 50-60 yuan per tonne Northern China (Beijing): 4,100-4,140 yuan per tonne, up 20 yuan per tonne East China’s Shagang raised its list price for rebar by 100 yuan per tonne during the day, which led a number of producers in region to follow suit.

Meanwhile steel futures struggled even amid continued production curbs. Texture from Reuters:

Many cities across China have either shut or cut output of industrial plants, including steel mills, with the city of Changzhou in Jiangsu, China’s No. 2 steelmaking province, the latest to issue similar orders.

“This is the kind of situation that will last at least until the end of this year because the supply-side restrictions are part of a long-term policy,” said a Shanghai-based trader.

Prices of other commodities including copper and oil also slid after a source familiar with the Trump administration’s plans said it will propose slapping a 25 percent tariff on $200 billion of imported Chinese goods after initially setting them at 10 percent, in a bid to pressure Beijing into making trade concessions.

But Chinese steel prices will be supported by tighter steel supply and with demand spurred by government infrastructure projects, the Shanghai trader said.

Chinese steel producers have expectedly raised prices. Jiangsu Shagang Group, China’s biggest private-owned steel mill, said on Wednesday it had raised its rebar prices for August by 100 yuan a tonne and some plates by 50 yuan a tonne.

The restrictions in steel production have reduced demand for steelmaking raw material iron ore, whose supply remains high, pressuring prices.

Stockpiles of iron ore at major Chinese ports stood at 155.68 million tonnes on July 27, not far below a record 161.98 million tonnes reached in early June, according to data tracked by SteelHome consultancy.

Daily iron ore price update (rebar pushing again)