Saturday, Aug 06,
Spot iron ore market in China attained a cautious stance by the end of the week and prices narrowed by $1-2/MT as Chinese buyers became more cautious.
Highlights of the week:
* Prices for Fe 63.5/63 of Indian fines reached $187-188/MT (CNF China) i.e. higher by $3/MT from a week ago but prices slipped back to $186/MT by the end of the week as buyers became cautions due to the US economic crisis
* India’s apex court partially lifted the ban on mining activities in Bellary. But the ban on exports still remains intact.
* Shanghai rebar steel futures on Friday fell more than 2 percent to reach their lowest in over three weeks. The most-active January rebar contract on the Shanghai Futures Exchange fell as low as 4,823 yuan ($749)/MT, its lowest since July 11.
“The fear of the debt crisis has spread further and stocks and futures markets across the globe tumbled. As spot steel prices haven’t seen significant falls, spot iron ore next week could remain stable or inch up slightly” , said a Iron ore exporter.
“Even though there were reported deals at high of $187.5 and $188 (CNF CHINA) earlier this week, buying interest remains thin. And prices dropped by $1-2/MT by the end of week as buyers are becoming more cautious”, said a Iron ore trader in China.
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