Thursday, May 12,
Spot iron ore prices remain stable on thin buying interest from Chinese steelmakers.*
However, traders say supply of ore from India is expected to slow during the monsoon season which starts around June. So, this should keep prices from falling sharply.
Indian exporters concluded a deal of 30,000 tonnes of 63.5/63 grade iron ore fines in China at $187/MT.
According to traders based in China, “I think prices are holding up well. We don’t see it dropping so much and it could stabilize in the mid-$180 levels. The Indian monsoon season is coming so the supply of spot cargoes from India will be reduced. On the demand side, steel production in China is growing quite fast and demand is good given there’s a lot of construction work going on in China”
Karnataka last month lifted the iron ore export ban imposed in July 2010 but some traders said they have not seen any shipments out of Karnataka yet.
“Although the ban was lifted, the issuance of permits for exports has become very strict and there are other rules in place, so the old pace has not been restored,” said a trader in Shanghai who sells Indian ore to Chinese mills.
Traders are watching Chinese steel prices for cues on buying iron ore a key steelmaking ingredient. A move by China’s industry pricing leader, Baoshan Iron & Steel , to keep prices unchanged for June should keep iron ore prices stable through next month, the trader added.
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