* Steel production cuts continuing in China
* Vale sees iron ore averaging $130-$160/tonne in 2010, 2011
Iron ore prices dipped as Chinese buying eased after prices scaled near five-month highs last week, although tight supplies of the steelmaking raw material kept offers firm.
“There are fewer purchases because prices have moved up too fast in just a few days, so buyers are taking a break,” said an iron ore trader in Shenzhen.
“There is selective buying in the market, buyers are cautious buying iron ore at these levels, when steel prices are going down in China” said an exporter based in Eastern India.
Offers for Indian ore in China with 63-63.5 percent iron content stood at $157-$158, cost and freight on Tuesday.
The Steel Index (TSI) 62 percent iron ore benchmark .IO62-CNI=SI slipped to $152.20 a tonne, cost and freight to China, at the end of trading on Monday, from $152.70 on Friday.
The index touched its highest in nearly five months on Thursday after an eight-session rally fed by demand from Chinese steel mills based in the key production hub of Hebei province resuming operations after state-set production curbs.
Source: Reuters
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