Wednesday, January 19,
High-grade Indian iron ore was sold in the spot market this week at $192/MT, including freight, traders said on Wednesday, a level not seen since spot prices hit a record around $200 in February 2008.
Tight supplies from India and Brazil due to weather-related problems at a time when top buyer China is restocking on the steelmaking material ahead of Lunar New Year have been boosting prices.
Indian commodity exporter Bagadiya Brothers Pvt Ltd sold 50,000 tonnes of 63% iron ore fines to a Chinese buyer for shipment in mid-February, according to three trading sources who were notified of the deal.
“Exporters are now quoting $192 a tonne for 63.5/63 grade and it seems buyers are ready to pay $190-$191,” said an Indian iron ore trader who was informed of the Bagadiya deal.
“The way buyers are buying, the price will touch $200 although exporters in India are becoming cautious on how long the prices can be sustained,” he said.
Contract prices by global miners Vale and Rio Tinto could rise again in the second quarter after a projected 7-8 percent increase in January-March, with spot prices closing in on $200 a tonne, traders said.
Source: Reuters
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