Monday, June 06,
Spot iron ore market in China remains closed due to the Dragon Boat Festival. However, the market is hoping for a turnaround and some action might be seen this week as Chinese steel mills are expected to return to the market in order to replenish run-down inventories.
The forwards swaps market witnessed some price gain on Friday which suggests that market players are looking at firmer spot prices ahead.
According to traders based in China, “We believe there are quite a lot of people who are comfortable to buy at these levels. Also you have some mills who have not bought over the last few weeks and they’re running low on inventories”
Traders are also eyeing a tender by BHP Billiton this week which should help indicate where prices are headed. BHP is selling a capesize cargo, half of which is 61.4 percent grade and the rest at 58 percent grade, with the tender closing on Tuesday, traders said. Chinese traders said BHP is looking for a bid of at least $172/MT.
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