Spot iron ore prices gain $1-2 on new supportive policies announced by Chinese government.63.5/63 Fe reaches $137-138/t CFR.
Physical market shown some interest as steel mills are reported to have running out of stock and iron fines from Brazil and Australia heard to be traded higher by few dollars.
“The government just approved two steel projects at Zhanjiang and Fangcheng port, with capacity of 10 million tonnes each, those projects had been held approval for 34 years, you know the over production will be the main issue in China, so I would not say we could see any good prospect of the whole steel industry in China.” said a iron ore trader based in Beijing.
“Indian exporters have started stocking iron fines on eastern coast of India looking at early monsoon this time.West coast will be closed from 1st week on June.” said an Indian exporter based in Mumbai.
Also Indian exporters are eyeing exports of mill scale over iron ore fines as it does not attract any export duty.Currently mill scale of grade 69/70% Fe is offered at around $140-141/t CFR China, he further added.
Leave a Reply