Tuesday, July 12,
Spot iron ore prices in China remains unchanged on Tuesday. Offer for Fe 63.5/63 of Indian cargo stays at $1810-181/MT.
Traders indicate that prices in the short term might remain firm at the current levels as Shanghai steel futures have reached a month’s high. “I think the main driver in iron ore is the big traders are trying to take positions. They are buying some big cargoes. But I haven’t seen a strong comeback from the steel mills yet and it’s because cash remains tight”, said a shipping manager for an iron ore trading firm in Shanghai.
Baoshan Iron & Steel, China’s biggest-listed steelmaker, on Monday also said it would keep prices of its main products mostly unchanged for August bookings. Analysts say high production costs are keeping steel mills from cutting prices. So July and August are the months to watch out for in terms of Chinese steel production. If there will be a fall, it should happen during these months as September onwards market might show some upward movement and prices might go up
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