Thursday, February 10,
Spot Iron Ore prices in China opened with a price hike and offers for 63.5/63 were heard touching upto $196/MT CNF China, though no deals were heard concluded at this rate.*
Chinese market were closed for a week on account of Lunar new year and opened on Wednesday. Shanghai Re- Bar also touched recod high.Though its a matter of concern for Chinese economy as this is leading to inflation.Chinese govt has increased its interest rates in order to curb inflation.
Tight supply of the steelmaking ingredient has fueled a rally in iron ore prices since the year started, with Brazilian and Australian cargoes hampered by weather problems and Indian exports cut by a ban on shipments from its Karnataka state.
“I think prices will continue to rise. Supply’s still tight and unless something changes on that front, gains will be sustained,” said the Shanghai trader.
“The actual impact on prices will depend on the timing of the ban lifting and how quickly the Indian mines ramp up exports of material.”
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