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Iron ore prices rise again on China steel demand hopes.

Issued at 2011-04-13



 Iron ore prices continued to rise today with buyers in China returning to the market and building up their stocks in anticipation of improved demand.

Industry consultancy Mysteel said 63.5-63 per cent Indian fines were being quoted at US$183-US$185 (RM552.66-RM558.70) per tonne today, up US$2 on the day.

Prices of iron ore in China, the world’s biggest consumer and importer, have now risen 7 per cent in the last two weeks, reversing a slump of around 13 per cent beginning in mid-February.

However, traders suggested that the recovery in prices has been too rapid to be sustainable.

“The market is crazy as prices have surged too fast,” said an iron ore trader in Beijing.

“There are some buying activities, but this is still not strong enough to push up prices so quickly.”

Analysts have said buyers have been making purchases to keep their inventories at a healthy level, but overall demand remains uncertain and prices could dip again in coming weeks.

Platts’ 62 per cent iron ore index rose 50 cents to US$180.5 a tonne yesterday.

The Steel Index’s 62 per cent benchmark rose US$2.2 to end at US$176.10 while Metal Bulletin’s index rose US$3.72 to US$176.16.

Traders in China are currently waiting for more details about a latest government plan to “rectify” the country’s iron ore import market.

Beijing is researching a range of new measures to deal with the “financialisation” of global iron ore pricing as well as bring “order” to the domestic ore market, official news agency Xinhua said.


Source: The Malaysian Insider



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