September 15,
Asian Iron ore spot prices were steady, with the Steel Index benchmark reaching seven-week lows as the demand outlook remained hazy.
Chinese markets will remain closed on Sept. 22-24 for the Mid-Autumn Festival and on Oct. 1-7 for the National Day holiday. This news limited the activity in both the physical and forward swaps markets.
The prices of Indian cargo Fe 63.5 went down from last week’s prices, which ranged between $147 and $152. “Quotations keep falling and I don’t hear any deals,” said an Iron ore trader in Hangzhou in southern China.
“We’re considering buying some cargo and stocking it in the ports and waiting for the price to recover. We think the price will recover when the restriction on electricity use is over,” he said, adding that he is looking for an offer below $145 for 63.5 grade Indian ore.
The prospect of tighter supplies of Iron ore in coming months has prompted Chinese steelmakers to raise prices; with industry leader Baoshan Iron & Steel saying on Tuesday that it will raise prices of key steel products by up to 8% for October.
Source: Reuters
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