Today, Fe 63.5 fines prices remains at around USD 131/MT CFR China.

Whereas, Fe 61.5 PB fines gain USD 1 to 131/MT CFR China.

Traders forecast a market boost in future. The major factor strengthening the Iron ore market was the injection of money by Central bank of China into the market of around 29 billion Yuan (USD 4.78 billion) through reverse repo agreements, which would result in cheaper borrowing for Mills, and hence solve their tight liquidity problem.

As per Official data’s, the Chinese government would start constructing 6 million units of affordable houses and complete around 4.8 million units by 2014. This will boost construction activities to a large, giving strength to Steel market of China.

Currently, Square Billet prices stand at around RMB 2,970/MT (EXW; VAT included) in Tangshan; it see an upward movement of RMB 10/MT. The most active Fe 62 Iron ore contract for May delivery closed at RMB 900/DMT on Tuesday, up by RMB 8/DMT from previous close.

USD 1= 6.1160 RMB

India

Iron ore e-auction by MSTC held on 21 Dec in Karnataka, on behalf of other mines and stockyards got a good response. Out of 992,000 MT of Iron ore offered, 61% of it was sold.