Monday, January 17,
Indian ore with 63:5 percent iron content is being quoted at $184/MT C&F, with some offers seen even at higher price, said Chinese trader.
China’s week-long New Year holiday starts on Feb. 2.
“Steel mills are finding it hard to accept the surging cost of iron ore and might suspend buying for a while,” said a Beijing-based trader.
The sustainability of the rally in iron ore prices also hinges on whether steel producers can pass on higher cost as quickly as it comes, traders said.
Concerns of heavy rains in Brazil might disrupt the exports from there along with already tight supplies from India at a time when Chinese steelmakers are building stocks ahead of the Lunar New Year next month could lift prices to $200 a tonne, a level not seen since 2008.
“I think you’re going to see a bit more volatility in the spot market because of these supply disruptions as quite possibly some of the steel mills are trying to get ahead of the game by securing their raw material as soon as they can.”
Source: Reuters
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