Spot prices for iron ore continue to be firm on Tuesday.
However, steel mills and traders remain cautious amid the uncertain outlook for
the global economy.
Offers for Australian 62 percent Newman fines rose by $1 to reach
$184-$185/MT, including freight, on Tuesday. While quotes for Indian Fe 63.5/63
fines stayed at the level of $189-190/MT (CNF CHINA).
“We may not see a big improvement in iron ore prices in
the near future, as the murky global economic outlook as well as the continued
tightening impact in China have dented buying interest. However, steel
production is still high and the persistent tightness in supply from India will
continue to back iron ore prices,” said an analyst.
Chinese steel mills, which produce about half of the world's
steel output, are buying more ahead of the traditional peak consumption season
in September and October, although remain cautious.
The most active January rebar futures on the Shanghai
Futures Exchange extended losses on Tuesday, down 0.13 percent to 4,794 yuan
($751) per tonne at the midday close.
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