Spot Iron ore edges up by $1-2; Fe 63.5/63 at $145/MT

Spot iron ore prices
edge up by $1-2 after Chinese bank cut CRR rate by 50 basis point , Chinese
steel prices also went up for the 2nd day in a week.

Indian fines Fe 63.5/63
is quoted at around $145/Mt i.e. up by $2-3/MT from the previous trade price.

Brazil's top iron ore miner Vale sold a capsize cargo of 65-percent
grade material at $150.05/MT at a tender on Tuesday i.e. higher from the previous
tender.

Australian producer BHP Billiton also sold 62.7-grade Newman
fines at $138.55/MT versus a previous sale of $137.50, and 57.5-grade Yandi
fines at $127.15, marginally higher from the previous tender.

China's move to cut banks' reserve requirement ratio for the
first time this year helped Shanghai rebar futures end a seven-day slide on
Monday. The most-traded May rebar contract on the Shanghai Futures Exchange was
up 0.7 percent at 4,206 yuan a tonne by the midday break, after hitting a near
one-week high of 4,211 yuan/MT.

“The RRR cut won't be good enough, we have to see construction
activity in China resume to support iron ore demand going forward,” said a
Singapore-based trader.