Steel rebar futures in Shanghai jumped nearly 3 percent to six-month highs on Friday, tracking a global rally in commodities and helping lift iron ore prices with a key index at 5-½ month peaks.
Global commodities rallied on Thursday, thanks to a sliding dollar after the U.S. Federal Reserve's decision to buy $600 billion of U.S. debt.
"The U.S. QE (quantitative easing) policy has provoked wide expectations of rising inflation, and this has pushed up commodity prices, including steel and iron ore," said Jiang Zhiwei, an analyst with BOC International Futures.
Indian ore with 63.5 percent iron content was offered as high as $165 per tonne, cost and freight in China, more than 4 percent higher than earlier in the week, traders said.But very few deals were concluded, most of the deals yet happening at $159-160/MT
Iron ore buying by Chinese steel mills picked up pace this week as rising steel prices assured them of better profits.
"We see improving transactions this week as both traders and steel mills have begun to take deliveries and accept our offer prices," said an iron ore trader in Shanghai.
Indian Steel futures also rallied in last week over high input cost.
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