Iron ore prices in Seaborne market rebounded from 5-year low amid speculations that Chinese government may give some more stimulus. Earlier, the government had reduced interest rates on 40 basis points.
Prices rose up to USD 1-2/MT and Fe 62% assessed at USD 69-70/MT CIF China. However, Chinese traders believe that it is too early to say if prices have stabilized.
“It is tough to say when will Iron ore prices bottom out. There is less demand, but supply is consistently increasing. Moreover, it is near low season in China (Dec/Jan) and low Oil prices in the international market is another reason as well.
I don’t think Iron ore prices should fall further as main Chinese miner will reduce production if prices fall further. Even if prices rebound, it would be hard to see USD 80-85/MT in coming months,” said a Chinese trader based in Qingdao.
Another importer mentioned that stock situation of Chinese mills is unchanged, they don’t have much stock in their factories.
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