Tuesday, May 03,
Spot iron ore prices remain firm with offers for high-grade Indian cargo expected to edge this week as Chinese steel mills look forward to restock.*
China, along with many markets across the world, was shut on Monday for a public holiday.
“Steel demand in China is becoming bigger as more construction activity takes place so prices are rising,” said an iron ore trader in Chinese eastern Shandong province.
Market players are also watching for possible production cutbacks by Chinese steel mills amid expected power curbs ahead of summer although some traders say the overall impact may be marginal.
“I feel that the market is on an uptrend, but the increases won’t be large,” said an iron ore trader in Beijing. “Prices may rise this week as steel mills plan to rebuild inventories.”
Tight supplies from India, the world’s No. 3 iron ore exporter, during its monsoon season also bodes well for iron ore prices.
“I think 63.5/63 grade may be offered at above $190 this week and big mills may be willing to pay $187,” said the Shandong-based trader.
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