Price offers for Australian and Brazilian spot iron ore
cargoes in China rose on Friday with traders betting on more price rises while
mills were hesitant to buy more amid slow steel demand. However, Indian fines
were offered at the same level of $136-138/MT
A fall in spot iron ore prices to two-week lows last week attracted
buyers back into the market as Chinese steel mills replenished stocks,
encouraging traders to bid up the market and recover from losses they incurred
in May when prices slid to their lowest for the year.
But unless steel prices rebound, iron ore prices may soon run
out of steam, as mills wrap up restocking and traders run out of buyers willing
to take cargoes at current prices.
Price offers in China for cargoes from top iron ore exporter
Australia rose by a dollar per tonne for a second day on Friday, while those
from No. 2 supplier Brazil also increased by a dollar a tonne.
While more traders than mills are snapping up iron ore cargoes,
they are also quick in selling them. A major Chinese trading firm bought a cargo
at $144 a tonne on Monday and sold it on Thursday at $146, traders said.
“Traders are
going for quick deals these days. I don't think they're 100 percent confident
on the future of the steel market,” said an iron ore trader in Shanghai.
“We got feedback
from several mills, saying that product sales are still very slow.”
Source: Reuters
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