Sellers for spot iron ore continued
to raise offer prices on Monday, but steady steel prices is unlikely to
encourage more aggressive restocking by steel producers.
Offers for Indian fines Fe
63.5/63 went up to $ 149-151/MT; i.e. up by $ 5/MT from the quotes seen last
week. Similarly, Australian Pilbara iron ore fines rose by $5/MT to reach
$139-$141/Mt C&F, and Newman fines increased by $2/MT to reach $141-$143/MT.
“Many traders continue to
hold onto their cargoes believing that many mills will need to replenish stocks
but doubts remain over underlying steel demand”, said Steel Index said in a
note.
“The market can still go
stronger, but with weak steel demand, iron ore prices may just stabilize. Inventories
are running low but there's no strong need for Chinese mills to restock “,
said an iron ore trader in the port city of Rizhao in China's eastern Shandong
province
Shanghai Rebar traded at 4,250 yuan
($670)/MT in Shanghai's spot market on Monday i.e. little changed from last
week, the trader said, reflecting thin demand at home. The most-traded May rebar contract on the Shanghai Futures Exchange
closed nearly flat at 4,164 Yuan/MT.
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