The spot iron ore market softened marginally by the end of
week as steel mills hesitated to make huge purchases. However, strong expectations of a rise steel output in
the coming months might lend support to the iron ore market and may limit any
sharp downfall in prices of the key raw material.
Highlights of the week:
* Quotes for Fe 63.5/63 of Indian fines reached $187-188/MT by
the end of week i.e. down by $1-2/MT from the previous week. Whereas,
Australian 62% Newman fines remained unchanged at $183-$185/MT (CNF)
* A few cargoes from Australian miners were also traded at
lower prices late this week, with a cargo for 63-pecent Fe fines sealed at
$184/MT i.e. down slightly from earlier this week.
* However, Iron ore cargo from India of Fe 59/58 was sold
this week at $158/MT, i.e. up by $2/MT from last week as availability of low
grade cargo is limited
* Inventories of imported iron ore at major Chinese ports
fell a modest 0.2 percent to 95.51 million tonnes by the end of this week after
hitting a record 95.59 million tonnes last week
* Monthly auction of Iron ore in Karnataka to begin next
week i.e. from 14th September onwards.
Comment by:
Traders: “Buying activities were not so
high as steel mills were hesitant to buy more when the offers hit $190/MT. And
spot offers went down slightly. However, the downside is limited as market
players are expecting the consumption to improve in the coming months”
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