iron ore import market gained momentum Thursday on stronger
steel prices and tight supply.
Mainstream spot prices for
Indian fines with 63.5-percent iron content rose to a range of
$140 to $142 per tonne c.f.r. China, the highest level since
"The physical steel market is
showing more signs of strengthening," an iron ore trader in
Shandong said. "The iron ore spot market is gaining traction
with the rising (billet) prices."
"Recent incentive policies,
including 21 projects approved by Chinas National
Development and Reform Commission on Dec. 24, local
governments urbanization plans and the China Central
Banks loose monetary policy, have boosted the market
confidence," an industry analyst in Shanghai added.
Some market participants are now
expecting spot prices of 62-percent fines to reach $145 to $150
per tonne c.f.r. in January.
"We think there will be more
rises in iron ore prices next month, so we are holding off for
better prices," a Shanghai trader said.
But the relatively sharp rise has also sparked some caution.
"The risk is there, as steel producers are still in the red
despite the rally of both steel and iron ore markets," another
Shanghai trader said.
A version of this article
was first published by AMM sister publication Steel