Spot iron ore prices extended rise as Chinese steel mills
picked up buying after prices slumped more than 30 percent since early
September. But gains are expected to be short-lived as steel production cutbacks
and rising ore supplies combine to prevent a significant rise in prices.
“Demand is just not there, for the global market, and I
don't expect any big improvement in the months ahead,” said a senior iron
ore trader in China's costal Shandong province.
However, supply from India remains critical with a pause in
Iron ore transportation from Orissa & ban in Karnataka and closure of mines
in Goa.
“Unfortunately Indian exporters are not holding much
cargo with them as Orissa mining authorities are not issuing permits to
exporters from last 20 days”, said a Iron ore trader in Orissa.
Most of the mines in Goa are also closed after the Shah committee has
reported them operating illegal.” said an Exporter based in
Kolkata.
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