Tuesday, January 18,
Spot iron ore prices touched near nine-month highs and offers remained strong on Tuesday, supported by firm Chinese buying and supply concerns in key producers Brazil and India.
There is market talk that India may lift export duty on iron ore to 20 percent from 5-10 percent currently, traders said, further tightening supply from the world’s third-largest exporter where a key state Karnataka has already banned shipments since July.
India last raised the export tax on iron ore lumps in April 2010 to 15 percent from 10 percent, after slapping a 5 percent export duty on iron ore fines in December 2009.
Limited supplies from Brazil due to massive rains, Chinese stockpiling ahead of the Lunar New Year in early February and concerns over Indian exports could lift spot iron ore prices to $200 a tonne, a level last seen in 2008, traders said.
Offers for Indian ore with 63.5 percent iron content climbed to $188-189/MT, including freight, on Tuesday.
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