Prices for spot Australian iron ore cargoes rose on
Thursday, backed by demand from main buyer China, although the uptrend in
prices of the raw material may soon be cut short unless the steel market
bounces back convincingly.
Price offers for Australian iron ore in China rose by a dollar
per tonne on Thursday, according to industry consultancy Umetal, after miners
sold shipments at higher prices on Wednesday.
“Some traders are starting to take positions because
they feel the market can go higher, given that the Chinese government has been
supporting the economy and speeding up approvals of infrastructure
projects,” said a Shanghai-based iron ore trader.
Australian miners sold cargoes at higher prices on Wednesday,
with BHP Billiton selling 90,000 tonnes
of 62.7-percent Australian Newman iron ore fines at $138.10 a tonne, up from a
previous sale of $135.50, traders said.
Top iron ore producer Vale is also selling 172,000 tonnes of
64.7-percent grade Carajas fines at a tender that closes later on Thursday.
” The market direction is still unclear underlining
market concern that demand may not pick up soon, China's Baoshan Iron and Steel
also indicated to cut prices for July, its first reduction since last December”
said the Shanghai trader.
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