The tightness in the spot market of Indian iron ore fines reported last week has resulted in higher transaction levels on week opening.
Although credit squeeze news from Chinese banks is keeping domestic steel prices in negative motion, Chinese steel mills with such high production levels are under pressure to secure their iron ore supplies. Hiking of forecast for benchmark settlement as well as Big 3 negotiation tactics are further buoying the spot market.
Spot prices of Indian iron ore improved by 1.1% to 2.5% for various grades on week opening giving rise to speculation that further gains are likely as some Chinese buyers may like to secure tonnages before they close for Lunar Holidays.\