Tuesday, June 14,
Spot iron ore prices on Tuesday move up by $1-2/MT as Chinese steel mills continued to rebuild inventories. But the volumes are not so high as market players anticipate another hike in interest rates soon.
Indian Exporters quote Fe 63.5/63 at $180-$181/MT i.e. up by $1-2 from Monday.
According to traders based in China, “Steel mills have come back to market to replenish stockpiles since last week, and the continued tightness in Indian ore supply has also backed up prices”
But market players expect inflation to pick up again in June, prompting the central bank to raise interest rates as soon as this month, for the fifth time since October.
“I expect iron ore price rises will not be sustained in July as Beijing might undertakes more tightening policies to curb liquidity and bank loans, and steel mills will face tighter credit conditions that will keep them from buying much,” the Shandong trader said.
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