During the week, FOB prices of Indian iron ore fines continued gains taking the total hike in iron ore prices to 20% to 40% for different grades since last low on March 10th 2010.
After, Baosteel raised its April hot rolled coil steel price by CNY 300 per tonne, sentiment in the Chinese steel markets firmed up further and some steel mills started to restock their inventories. In other words, increased buying interest was seen in the market.
The low availability of spot cargoes from Brazil and Russia are playing major role in pushing up prices in China
The cheap finance and speculation on the currency has also played a part.
As per market reports, some 63.5%/63% cargo have been concluded at USD 155 per tonne to USD 157 per tonne CFR China and offers are heard above USD 158 per tonne CFR.
But, some Chinese buyers are still showing interest in the lower band hoping for a reduction in CFR prices as sea freights are expected to reduce in line with BDI going don below 3000.