Global iron ore prices are witnessed at USD 56/MT, CFR China on 26 Sept’16. Prices are range-bound around USD 55-56/MT, CFR China despite active trading activities.
Chinese steel mills have started restocking ahead of Chinese national week long holidays between 01 Oct to 07 Oct. This led to increasing in the trading activity at Chinese ports. There was short-term restocking demand for iron ore, which made iron ore prices to remain stable.
Spot steel prices also followed a waving pattern. Spot billet prices in Tangshan rose RMB 60/MT during the weekend but fell RMB 30/MT today. Current prices for billet are at RMB 2,140/MT (USD 321).
There were mixed sentiments in the market today. Few traders believe that rise in purchase of iron ore by mills will keep prices at higher side for the week, whereas, few believed that drop in spot billet prices will keep seaborne iron ore prices under pressure and may create a negative outlook.
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