Tuesday, Nomember 16,
* Baosteel sees no big changes in Q1 supply, demand
* Market awaiting court ruling on Karnataka ban
Iron ore prices were little changed on Tuesday after a key index slipped from six-month highs as top buyer China slowed purchases with the decline in steel prices.
Growing concerns over the likelihood of another interest rate hike in China after inflation accelerated to a 25-month high in October have weighed on commodities, including steel rebar futures in Shanghai, which have lost around 5 percent since touching 15-month peaks last week.
Offers for Indian ore with 63.5 percent iron content stayed between $164 to $166 per tonne on Tuesday, cost and freight in China.
The Steel Index iron ore benchmark dropped to $160.80 a tonne on Monday from $161.80 on Friday, its highest level since mid-May.
“Iron ore prices are always responsive to steel prices and steel prices have weakened,” said an iron ore trader in Shanghai.
“How long this will last and if this is going to be the start of a downward trend, it remains to be seen because supply is still tight.”
Supply of high-grade iron ore from India, the world’s third-largest exporter of the steelmaking ingredient, had been tight since Karnataka had banned iron ore exports in July.
Market players are expecting the Karnataka High Court to rule on the ban this week after exporters contested it during several hearings”That will really push prices down if the ban is lifted,” said the Shanghai trader.
Prices of iron ore swaps rose on Monday, rebounding from losses in the previous session, with swap volumes cleared by the Singapore Exchange jumping to 232 lots, or 116,000 tonnes, from 30 lots on Friday.
Source: Reuters
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