Friday, February 11,
Iron ore prices , which have been steadily climbing to touch $200 per tonne, may cool off in the long run as China is all set to increase iron ore production.*
Karnataka verdict is likely to come today and exporters and miners are quite optimistic that ban will be lifted and exports of Iron Ore will start from March.
Iron ore prices in China has reached all time high and steel mills and importers are cautious at these levels.” We saw these levels in mid 2008 and after prices crashed as much as 60 %. There is limited buying and limited selling noticed in the market. Prices might rally for some time but its sustainability remains a question.” Said an importer based in Shanghai
RK Sharma, secretary general of Federation of Indian Mineral Industries, who added that China will continue to play a big role in influencing global raw material prices. “Globally, there is a supply crunch of iron ore. This is expected to drive prices up further in the coming days. The Chinese have, so far, not been active in the global market due to the New Year-related activities,” Sharma said. In the next few months, the outlook on prices is expected to remain bullish as the global steel industry is led by the revival in demand from the Chinese steel makers.
H Noor Ahmed, partner of Trident Minerals, said that the current upward price movement is a “momentary phenomenon” and is largely expected to be led by China. “However, we are now disturbed with the closure of iron ore mines in Karnataka which is affecting domestic supplies,” he added.
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