Monday, July 11,
Iron ore prices at the end of last week touched two-week’s high as rising steel prices encouraged steel mills to restock the raw material.
Spot Iron ore in China gained marginally on Monday with Fe 63.6/63 from India being quoted at $180-$181/MT. Whereas, quotes for Australian 62-grade Newman fines stayed at $176-$178/MT
Despite of improved stockpiling activities in the past week, traders fear that tighter liquidity will make it difficult for Chinese steelmakers to fund operations, including the purchase of raw materials like iron ore.
According to traders, “it might be difficult for iron ore prices to rise strongly, with tighter credit in China pushing mills to either buy from domestic suppliers or from stocks of imported ore already lying in Chinese ports which are cheaper than spot cargoes”
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