Wednesday, November 03,
Iron ore spot prices increased by $3/MT to reach at $159/MT and forward swaps also rose sharply, supported by tighter Indian supplies and some Chinese buying, as sellers stuck to high offers on Wednesday.
Supply of higher grade iron ore from India has been tight since the southern state of Karnataka banned iron ore exports from late July in a crackdown on illegal mining.
Iron ore exporters in the state have challenged the ban and the Karnataka High Court is expected to announce a ruling soon after holding several hearings. Market sources say the decision may be announced later this week or next.
“Some big trading companies are now expecting iron ore prices to rise in the near future, and have started to look for material in India,” said an iron ore trader in Rizhao in China’s eastern Shandong province.
The Steel Index 62 percent iron ore benchmark ticked up 0.2 percent to $150.20 a tonne, C&F China, on Tuesday.
Prices of forward swaps jumped on Tuesday, indicating market players anticipate further gains in spot prices.
But stockpiles of imported iron ore at China’s major ports had been dropping in recent weeks, which suggests the country’s demand-supply balance is tightening, Commonwealth Bank of Australia said.
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