Thursday, Aug 18,
Spot iron ore prices in China extends gain on Thursday seeing some supply concerns on the news of truckers strike in Orissa and Rio’s suspension of production in 2 mines.
Offers for Fe 63.5/63 of Indian cargo are being heard at $186-187/MT. whereas, Australian miner, Rio Tinto is offering 61.5-grade Pilbara fines at $178/MT i.e. $2 more than its last deal, traders said.
The most-active January rebar contract on the Shanghai Futures Exchange rose to as high as 4,874 yuan a tonne on Thursday, its loftiest since Aug. 5.
“We have to see stable steel market in the next few weeks. Otherwise I don’t think a lot of mills will take a chance to buy more iron ore,” said an iron ore trader in Shanghai.
“I believe BHP probably sold its last cargo to Baosteel. Mills are restocking on iron ore and they’re buying more from Australia since there’s not much spot Indian cargo,” said a Shanghai-based shipping manager.
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