Seaborne Iron ore prices show an overall upward trend. Reason behind this was the strong willingness shown by the mills to restock, which raises the expectation of the market.
The most briskly traded Rebar contract for May delivery up by RMB 23/MT touches RMB 3709/MT, after a long time its above RMB 3700/MT level since Sept 13.
Local billet plants in Tangshan keep their offers firm, citing a cost of up to RMB 3199/MT despite flat demand. Their strategy reflects their cautiousness towards the unstable demands.
The world’s four largest miners will increase iron ore output by 97 MnT in 2014, far beyond this year’s 76.5 MnT projection, predicted by Chen Fangmei (doctor in the raw materials purchase center of Baosteel).
China’s official PMI (Purchasing Managers Index) clung to 18-month high of 51.4 in Nov, refusing expectations for a reading of 51.1. A separate reading from HSBC is out now, which put China’s overall PMI at 50.8 in the month, down from 50.9 in Oct. But this is higher than the flash reading of 50.4. Both figures point to stable economic growth in China. But details appear to show the growth momentum has fallen in Q4.
On Dec 2, a tender of 90,000 MT of Fe 62 Australian fines sold at USD 137/MT through Global ORE with Jan delivery.
USD 1= RMB 6.0926
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