Spot iron ore market in China gained marginally by the end of the week and prices moved up by $2-3/MT. The fear of a global slowdown did not impact the iron ore prices much as expectations for strong demand as well as supply tightness supported the spot price.
Highlights of the week:
* Prices for Fe 63.5/63 of Indian fines reached $186-187/MT (CNF China) i.e. higher by $2-3/MT from a week ago
* BHP Billiton also sold 63-percent grade Newman iron ore fines at $182.50 a tonne, cost and freight, at a tender on Tuesday, up from $180.93 last week
* Rio Tinto, the world’s second largest iron ore producer had suspended operations at two mines in Australia following a fatality. But it resumed operations on Thursday
* The Re-bar contract on the Shanghai Futures Exchange rose to as high as 4,874 yuan a tonne on Thursday, it’s loftiest since Aug. 5
Comment by:
Traders: “The physical market seems to be optimistic as the steel market is showing signs of stability. End-user demand is there and they’re ready to pay market prices or even slightly above market prices”
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