China: Seaborne Iron Ore Market shows a sharp rise by USD 2- 3/MT

Seaborne Iron ore market shows a sharp rise by USD 2- 3/MT. The reasons traced were, the willingness shown by traders in restocking, which boosted the market sentiments.

Secondly, as per few analysts, this hike in Iron ore price is a result of the speculation among the sellers, due to the fact that most of the Steel industry at the year-end lacks with the liquid capital. Rather, they prefer buying cargoes on the sea, which has increased the demand of seaborne Iron ore.

This sharp rise is being observed consecutively from past 2 days.

The Sea borne Import prices of Iron ore of the major exporter countries on 4^th and 5^th December are as follows:

The billet market fell by RMB 10-20/MT stands at RMB 3000/MT, as there were no much trades done.

The most briskly traded rebar contract for May delivery suddenly broke down by RMB 16/MT ended at RMB 3693/MT after four-consecutive-day up trend.

Spot market prices increase by RMB10-20/MT, the recent stronger performance in Steel rebars and Iron ore swaps have supported spot ore prices, prevented them from correction in prices.

In China, as the weather gets colder, the small and medium-sized mining companies stop their operation, which will greatly influence the market in this short span of time. This will lead to low availability of resources in the market.

And as the reaction to the action the mills here have started piling up their stocks in advance. The prices are expected to follow an upward trend in this short duration, and steel mills could face the tight liquidity by the end of the year.

USD 1= RMB 6.1310