Wednesday, Aug 03,
Spot iron ore in China reaches 2-1/2-month highs. Firm steel demand from China and limited cargoes from India supports the prices at these levels.
Offers for Fe 63.5/63 stays at $186-187/MT, i.e. up by $1-2/MT from the previous week.
“We believe prices will continue to rise. Chinese mills continue to produce steel at record pace and there’s very limited supply of iron ore in the spot market,” said a Singapore-based trader.
Adding to the supply woes is the Supreme Court’s ban on mining in the iron ore-rich Bellary district in Karnataka.
“We are seeing an increase in shipment pace from Australia and Brazil. However, most of these tonnages are going to long-term contracts so they don’t have an impact on the spot market,” said the Singapore trader.
Global miner BHP Billiton sold a 210,000-tonne cargo at a tender on Tuesday at prices higher than a previous sale, traders said. Of the entire cargo, BHP sold 63-grade Newman iron ore fines at $182.75 a tonne, cost and freight, up from $182 on Monday, traders said. The other half comprising 61.2-grade MAC fines was sold at $175.30 per tonne versus Monday’s $173.
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