The spot market for iron ore is China remained firm backed
by restocking activities from Chinese mills and tight supplies from India. The expectation of a better steel
demand in September and October lend further support to the spot iron ore
market.
Highlights of the week:
* Quotes for Fe 63.5/63 of Indian fines stayed at $189-190/MT
i.e. same as the previous week. Whereas, Australian 62% Newman fines rose
by $1 to reach $183-$185/MT (CNF)
* Iron ore cargo with 55 percent iron content was sold at
$134 to $135/MT, cost and freight, to a steel mill located in China's Hebei
province, up sharply from a previous deal of $126 to $127/MT
* Inventories of imported iron ore at major Chinese ports
rose by 0.5% to reach a record high of 95.59 million tonnes by the end of this
week
* Global iron ore miners are likely to keep iron ore
contract prices steady in the fourth quarter
* Supreme Court of India allowed monthly auction of 25
million tonnes of Iron ore seized from various mines in Karnataka. However the
material auctioned could not be exported.
Comment by:
Traders: “The spot market remained firm this week amid growing buying interest
from Chinese steel mills. However, market is still lacking the aggressive buying
interest at the moment. Prices in the near term are expected to be firm and
chances are less for prices to correct soon”
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