Seaborne iron ore prices remain firm after increase of $2 on Tuesday. Steel mills in china are restocking, expecting steel demand will increase in September and October.
SteelMint assess that Iron ore fines on Wednesday traded at US $140 CFR China for Fe 63.5/63 grade. Positive sentiments prevailed in market for coming season it is expected that demand will increase for steel.
Steel production in china increased by 7.1% in first seven month whereas average crude steel output is increased by 2.14 MnT in august, supported by china government decision to increase their investment in infra sector.
Traders anticipating a boom in steel price as the weather condition are suitable for construction activity. Some steel mills in China are holding their purchase amid of mixed sentiments in pricing of iron ore.
Indian rupee touched intraday low of 68.9 against US $1. Indian government ask Supreme Court to give some relaxation on mines which was banned since 2011 and planning to reduce export duty to 20% from 30% this step by government may help Rupee to strengthened in future.
Iron ore miner BHP Billiton sold 80,000MT of Yandi fines grade 57.5% at US $129.91/tonne. An Iron ore trader sold Fe 63% Brazilian fines at RMB 955/MT at Shandong port. PB Fines at Shandong port offered at RMB 930/MT.
Billet price increased by 20 RMB to 3160/MT against the fall of 10 RMB on 26th August.
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