China Business News reported that iron ore's spot price in the Chinese market has surged to an 18 month high after the Spring Festival holiday, placing Chinese negotiators in the uphill price talks with major iron ore producers in an even more difficult position.
According to Xiben, a domestic steel spot trading platform, price for Fe 63.5% ore imported from India was USD 140 per tonne to USD 142 per tonne on February 26, USD 10 higher than before the holiday. The price for Fe 65% in Liaoning province, a major steel industrial base, increased CNY 30 per tonne to CNY 50 per tonne by February 25.
Analysts from Xiben attributed the price hike to steel mills' restocking after the traditional Chinese New Year, which fell on February 14 this year. Most mills stopped stocking iron ore since the beginning of February because of holiday traffic rush and bad weather.