Spot iron ore in China rose
further to reach their highest in more than three months and offers stayed firm
on Thursday as Chinese mills restocked amid strong steel demand.
Indian exporters quote Fe 63.5/63 at $189/MT looking at the firm demand from China. A cargo of Fe 63.5/63 was sold at $188/MT yesterday evening. Whereas, Australian 62 percent Newman fines were
quoted at $182-$184/MT.
China’s infrastructural and
construction sector eats up the lion share of the world steel output, and
according to analysts China is still at that stage of urbanization and
industrialization and still plenty of growth is expected to come
China's daily steel production
has averaged more than 1.9 million tonnes since late February, up from last
year's 1.7 million tonnes.
But analysts and traders said the
upturn in iron ore prices could lose some gloss if steel prices in China, fall
sharply.
“It looks like Chinese
restocking is still underway, they still seem happy to buy iron ore. But
they're probably at a point where they could pull out any minute. So if there's
any negative news flow in the next couple of weeks, like weak PMI or another
rate hike, then you could see a pullback in buying.”, said analysts.
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