Skewed fundamentals hurt China iron ore-steel tag link
Jan 25, 2013 | 02:01 PM
LONDON A disconnect between Chinese iron ore and steel tags that began in late 2012 raises questions on whether there is enough demand to maintain iron ore buying interest and prices.
"Steel is an oversupplied market; iron ore is undersupplied. The fundamentals are slightly different at the moment," Melinda Moore, head of iron ore at Standard Bank Plc, London, told AMM sister publication Steel First.
Low stocks at Chinese ports, poor weather conditions and administrative disruptions have tightened iron ore supply since the end of last year.
Iron ore price volatility has been accentuated by factors ranging from heavy rains in Brazil to cyclones in Australia to a continuing iron ore export ban in India, thus taking control of prices out of suppliers hands. ....
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