Global iron ore prices are witnessed at USD 79/MT, CFR China on 25 Nov’16. Prices further rose by USD 2/MT in a D-o-D as Chinese future surges.
Market participants believe that too much of speculative trading is driving iron ore prices higher. With the seasonally weak winter period approaching, some Chinese steel producers are holding back from purchasing iron ore and waiting for prices to stabilize.
Traders and steel mills are still in dilemma about where will the price rally lead to and they are losing faith in a market thereby resisting themselves to do any trade.
Higher-grade products are still under supplied and are carrying high premiums at both Chinese ports and in the seaborne market, while some lower grade materials were only marketable with discounts.
On the other hand, Chinese iron ore imports are on track and will reach 1 BnT in this year end due to increasing low cost export shipments from Australia and Brazil. It should be noted that total 843.1 MnT iron ore has been imported by China during Jan-Oct’16, up by 9% from the previous year.
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