Friday, July 29,
Tight supply and firm demand keeps Spot iron ore prices firm on Friday.
China continues to produce steel like crazy, like above 1.9 million tonnes is becoming the norm now and margins are still positive. But the supply side is getting even tighter. Big miners are shipping more iron ore but most of them go to long-term contracts.
“We’re getting limited amount for the spot market and Indian supplies have been down due to the monsoon and the Karnataka ban”, said an iron ore trader in Singapore
Spot deals this week include the sale of Indian fines Fe 63.5/63 at $184-185/MT and a BHP Billiton’s 63-grade Newman fines cargo at $182/MT at a tender, up by $2 from last week’s tender.
According to traders based in China, “I don’t see prices moving up very high. However, as long as China continues its production levels and steel prices don’t collapse I see iron ore prices to be range bound between $185 to low $190s over the next few weeks”
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