Spot Iron ore in China extended
gain on Monday. Supply from India remains tight as exporters withhold some
cargoes waiting for prices to rise further.
Offer prices for Australian
63-grade Newman iron ore fines rose a dollar to reach $143-$145/MT, including
freight. Whereas Indian 63.5/63-grade fines rose by $2-4 to $142-$144/MT. But
Indian exporters are unwilling to sell cargoes below the price of $150/MT.
Firmer China’s steel futures are
helping boost expectations that iron ore can sustain gains in the near term. But
with the overall outlook for steel demand in China still gloomy, some mills
could hold off further purchases of iron ore.
“Mills were willing to buy when
prices went up $5-$10/MT, but at current levels they are now cautious
again,” said a physical iron ore trader in Shanghai, adding that some
mills prefer to buy iron ore from stockpiles at Chinese ports which are cheaper
than fresh cargoes.
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