Spot iron ore prices rose marginally on Wednesday as traders drifted
back to the market following the new year break amid signs that demand could
start to pick up in the coming weeks.
Australia's Pilbara fines of Fe 61.5 was being offered at
$141-143/MT and freight charges also went up $2 from Tuesday.
However, Indian fines Fe 63.5/63 remained at the same level of $148-149/MT, i.e same as the prices seen before Lunar New year break
Trading sources said activity was resuming after a slow start,
with an Australian miner closing a deal for a shipment of 63 percent iron ore
at a price of $146.6/MT on Tuesday.
“I don't think traders have been urgently rushing back
after the Chinese new year but things are picking up, with deals here and
there, and I think there are signs that demand will improve,” a trader
based in eastern coastal Zhejiang said.
The Ministry of Transport said on Tuesday that it would not allow
ships exceeding approved capacities to dock in its ports, a move that will
prevent Brazil's Vale from sending its giant vessels to China, its biggest
market.
While the decision to ban its ships from Chinese ports might
add a little to Vale's costs, Vale is still in a position to pursue its overall
strategy for the Asian market.
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