Spot iron ore prices inched up further as Chinese steel
mills replenished stockpiles and traders bet on further gains as a pickup in
the steel market is expected soon.
Sellers of imported iron ore in China lifted offer prices by
another dollar per tonne. Offers for Fe63.5/63 of Indian fines stayed at
$147-148 but prices of lower grades moved up by $1/MT. Australian Newman fines
was also moved up by $1 to reach $143-145/MT CFR
Chinese mills are restocking on iron ore as they slowly ramp
up steel output ahead of the seasonally busy periods in March and April for the
construction and manufacturing sectors, traders and analysts said.
But some are doubtful whether the iron ore demand will be sustained.
“Steel traders are buying high and selling low now, suggesting
that the current rise in ex-factory prices is mainly being driven by steel mills
rather than end-user demand. We are quite sure that end-user demand has not yet
picked up, so mills will be very cautious “, said analysts.
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