Thursday, June 09,
Spot iron ore prices remain unchanged on Thursday. Demand from Chinese steel mills have improved slightly but buyers show concern over tight supply of high-grade Indian material due to monsoons.
Deals for Fe 63.5/63 is being reported at around $181-182/MT but market players still remain cautious and buying activities are not so aggressive.
“We are getting more inquiries from mills who have low inventory levels of iron ore. There is also a shortage of high-grade material at the moment because supply from the Indian side is still tight,” said a shipping manager for an iron ore trading firm in Shanghai.
Apart from monsoon rains, logistical problems have slowed movement of iron ore from Indian ports. And despite lifting a ban on iron ore shipments in April, India’s Karnataka has yet to resume exports given the slow issuance of permits.
According to Traders, “even if we see spot prices fall from current levels because of weaker demand as we enter the third quarter, the traditional off-peak season, the downside risk is very limited because supply is still very tight.”
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