Spot iron prices which have seen revival in the last fortnight might be in for correction soon. After having gained in June the buying by the mills is tapering off. The much feared power rationing already in place the mills pruned production and consequent buying.
A tug of war has set in the physical iron ore market as the sellers trying to hold on to the prices and buyer averse to raise their bids. Fe 63.5/63 iron ore fines prevailing at USD 182 per tonne to USD 184 per tonne CNF. However no major deals have been reported as yet.
Despite the mitigating factors of monsoon in India a possible hike in Australian iron ore prices as super profit tax is implemented in July the market remains devoid of even speculative tenor.
( Source: www.steelguru.com )