Spot Iron ore in China extends
gain backed by firm demand from China amid signs that Beijing is ready to
fine-tune its prudent monetary policy.
China's central bank said on
Wednesday that it will fine-tune its monetary policy if needed underscoring
analysts' view that Beijing is switching its focus to support a slowing economy
and raising hopes of increased demand from the world's biggest commodity
importer
Firmer steel prices in China,
both spot and futures markets, is helping encourage mills to buy more ore,
suggesting that steel demand is picking up. Fewer available iron ore cargoes in
the spot market is also supporting higher prices, with miners continuously
raising offers.
Shipments from India had been
limited due to logistical problems and higher production cost Offers for Fe
63.5/63 of Indian fines climbed to reach $149-152/MT. Whereas, Australian
61.5-percent grade Pilbara iron ore fines rose a dollar to $145-$148/MT and Newman
63-percent grade fines increased $2 to $150-$152/MT.
Rio Tinto, the world's No. 2 iron
ore producer also sold Pilbara fines at $146/MT at a tender i.e. up from
$144.50 at Tuesday's tender, traders said.
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