Limited supplies and sustained
buying interest from China continues to lift spot iron ore prices for an 11th
straight day and the market stays well bid on Tuesday.
Firmer Chinese steel futures this
month has helped iron ore rebound from a more than 30 percent slide in October
and it is encouraging steel mills to replenish run-down inventories of the raw
material.
“Some of the sellers feel
that the market is rising and a lot of people are going to ask them for cargo
so they want to hold off for a bit to get better prices,” said the
Shanghai trader, adding that prices may go up another $5-$10 from current levels.
Buyers are bidding at $ 145-148/MT for
Fe 63.5/63 of Indian fines, Whereas, Indian exporters, whose costs are inflated
by export tariffs and high railway freight rates, are unwilling to sell at
current levels.
“The cost of producing 63.5/63
grade in India is about $145-$150/MT including freight and it doesn't make
sense to export at a loss. The mine owners can sell it to the domestic market
where the return is better”, said a trader.
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