The iron ore market which had been languishing under the onslaught of production cuts and ever melting domestic steel market was in for a welcome break on Monday after nearly a fortnight.
The physical market seems to have found some buying support with deals, reported at prices of USD 179 -180 per tonne, CNF main Chinese port for Fe 63.5/63.
The freakish improvement in prices amidst all round debacle was understandably raising eyebrows whether it is likely to culminate in rally against all odds. However it is unlikely that the rally has enough fuel to last for long.
The sudden buying might have been prompted by an expected supply constraint during the monsoon although in real terms the burgeoning stockpile at the Chinese ports 93.17 million tonnes belies any such dream.
( Source: www.steelguru.com )