Spot iron ore prices in China surged to $164-165/MT for 63.5 Fe cargo. Where as few deals were also closed at 167 for the same grade by reputed exporters. Sesa Goa sold a cargo at 167.50/MT for 63.5 Fe grade.
Spot Iron ore markets are positive backed
1.increase in Chinese Steel Prices
2.improved demand
3. Tight Supply of Iron ore from India
4.Weakness in Dollar
5.High LME Billet Prices
The recent big gains in Shanghai rebar futures and the dollar weakness had also spurred the surge in spot prices of iron ore, with traders saying it could touch $170 a tonne this week, more than $10 higher than the current index price.
"There's supply tightness and mills want to raise stocks," said an iron ore trader in Singapore.
"Steel prices are up and they want to buy ore and they're not finding the material in the market so they're bidding high and swaps are going very strong."
Supply of iron ore from India, the world's third-largest exporter of the steelmaking raw material, had been tight because of a continuing ban on shipments from the southern state of Karnataka.
“We’re getting more inquiries and there are still few available cargoes,” said Dhruv Goel, managing partner at iron ore trader Steelmint in India’s eastern state of Orissa, adding he sold 40,000 tonnes of 63.5 grade cargo at $162 a tonne, C&F, on Tuesday.
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