As Iron ore forward swaps extended gains, spot prices are
expected to bounce back when China returns next week after
the Lunar New Year holiday. Miners are also anticipating a pickup in Chinese
demand.
“Demand for low grade iron ore is strong from Chinese buyers, markets likely to open positive post holidays.” said an Indian importer based in Kolkata (West Bengal).
“Markets are quiet at the moment, but chances are high that Chinese mill will re-stock after week long holiday. Last trade for 63.5/63 was heard concluded at 148-149/t (CFR)” said another exporter based in Mumbai.
There's a view that Chinese mills need to restock after the
holiday, but at the same time the big miners who have held off sales this week
will release more tonnage next week so prices may stay range bound,” said
an iron ore trader in Singapore.
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