Friday, July 15,
Spot iron ore in China extended gain on Friday on restocking of iron ore by traders and steel mills in anticipation of strong demand.
Fe 63.5/63 of Indian cargo rose by another dollar to reach $182-$183/MT. Whereas, quotes for Australian 62-grade Newman iron ore fines remained firm at $178-$180/MT.
China is accelerating construction of 10 million social housing units for low-income earners, helping prices of construction steel products like rebar sustain gains since late June.
According to traders, “The price of steel is the major swing factor that is supporting iron ore prices, but I am concerned steel prices may temporarily lose momentum next week which could also cap gains in iron ore prices.”
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