Friday, November 19,
Recent indication by People’s bank of China to hike the interest rate by 57 basis points is likely to be confirmed today. Markets remain calm and wait for the decision to be confirmed.
Spot Iron ore prices remain unchanged and there were no buyers. “There is no query at all from Chinese buyers, not even at $164/Mt for 63.5 Fe cargo on CNF basis. Chinese buyers are waiting for the announcement. It is difficult to say which side will market head to” said an Indian exporter based in Singapore.
Last trade occurred at $168/MT for 63.5 Fe cargo on CNF basis said an Indian exporter but queries have deserted out from last 2-3 days. He also mentioned that dollar appreciation will have some impact on the prices as well. We have seen Copper and Zinc correcting sharply as Dollar strengthens.
Steel Re bar futures on Shanghai futures remained stable with lower volumes. Buyers are cautious and prefer to wait and see the market trend till the announcement is done by People’s bank of China.
More over Two major Steel mills in China have cut their December prices, while others kept it unchanged looking at weak demand in 4th quarter.
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