Spot iron ore in China moves up
further prices as strong steel output in China kept buying interest for iron
ore intact, with tight supply from Indian lending further support.
“The Chinese continue to
produce steel like crazy and Indian supplies are extremely tight at the
moment,” said an iron ore trader in Singapore, citing factors supporting
prices.
Offers for Indian grades rise by
$1-2/MT on Wednesday, with the widely traded Fe 63.5/63 grade quoted at
$187-$189/MT.
“It's very, very difficult
to get cargo from India. Goa is closed because of the monsoon season and there
is also a truckers' strike in the eastern side and that is adding to logistics
problems,” said a Shanghai-based trader who sells Indian material to
Chinese mills.
There is also increased interest
in low-grade Indian ore given by limited supplies. “I've sold a 55/54
cargo at $134 (a tonne, cost and freight), which I think is a record
price,” said the Shanghai-based trader.
Global miner BHP Billiton sold
Newman and Yandi iron ore fines at $183 and $159 a tonne, respectively, at a
tender on Tuesday, about a dollar higher than previous deals, said the
Singapore trader.
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