Offer prices for Spot iron ore in China remained unchanged on
Friday as uncertainty has prompted caution among buyers of iron ore and sellers
are holding off their cargoes.
Rumors of revision in export duty of lower grades iron ore
have prompted Indian sellers to hold their cargoes till the announcement of the
Union Budget 2012.
“China's steel production has been mostly steady at low
levels since the year started. We are not sure whether the steel market can
recover enough to support more iron ore buying beyond that”, said a Iron
ore trader.
However, the China's steel futures market showed an uptick and
prices of the most-traded October rebar contract on the Shanghai Futures
Exchange rose by 0.4 percent to reach 4,296 yuan ($680) a tonne by the midday
break, its second weekly gain in a row.
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