Spot iron ore market remains quiet with traders in China
being cautious due to a seasonal lull.
“The situation hasn't changed much, it is quiet, buyers
are holding back on purchases and keeping stockpiles low in order to keep
prices down. They aren't particularly optimistic about January and all we can
do is hope for better things after the Chinese New Year ,”said the manager of an
iron and steel trading firm based in Beijing.
Spot prices remained unchanged for the sixth consecutive day.
However, the most active rebar futures on the Shanghai Futures
Exchange reached 4,226 yuan/MT on Thursday i.e. down by 4 yuan from the
previous close. It has been fluctuating in a narrow range of around 10 yuan
this week, and remains around 15 percent lower than its June peak.
On Wednesday, the world's second biggest iron ore miner,
Vale of Brazil, successfully docked one of its giant iron ore carriers in
China, ending a year-long impasse with China's authorities. But it failed to
have any immediate impact in the market.
“I don't think it makes a great deal of difference to
us at this stage, the market is already flooded with Australian ore,”
said the Beijing-based trader.
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