Wednesday, Aug 17,
Firmer steel prices, buoyed by an active construction sector in China, encouraged Chinese mills to buy iron ore again this week after stepping back last week when global economic uncertainties weighed on equity and commodity markets.
Indian 63.5/63 grade ore was sold to a Chinese steel mill at $186/MT this week, about a dollar higher from last week, said an iron ore trader in Singapore.
“This means end-user demand is there and they’re ready to pay market prices or even slightly above market prices,” said the Singapore-based trader, adding he is looking at the Indian grade to be offered at $188-$189 in the days to come.
BHP Billiton also sold 63-percent grade Newman iron ore fines at $182.50 a tonne, cost and freight, at a tender late on Tuesday, up from $180.93 last week, traders said.
The physical market seems to be optimistic as the steel market is showing signs of stability. News that Rio Tinto , the world’s second largest iron ore producer, has suspended operations at two mines in Australia following a fatality, should also support prices further.
Leave a Reply