It is largely expected that the steel majors in China will be going for an average price revision to the tune of CNY 300 per tonne for September.
The feelers of price revision by steel majors in China have sent the market in tizzy. Chinese steel giant Hebei Steel took the lead and was immediately followed by Shagang and others. Rests are expected to join the bandwagon soon.
The positive feelers have catalyzed the iron ore market which seemed to be on the brink of relapse at the close of previous week.
It is learnt that Fe 63.5/63 cargo deal was done at USD 155 per tonne with offers prevailing at USD 156 per tonne to USD 158 per tonne for 63.5/63% Indian fines.
Earlier it had been reported that Chinese buyers had stopped evincing interest in Indian ore off late thereby indicative of a price collapse in the coming week.
However the emergence of a price hike possibility in the backdrop of cost escalation and an expected rally in demand during the autumn has pulled the iron ore prices from the brink of a certain relapse. It is worthwhile to mention that this might just be the last straw before the roll back commences.
Though more enquires are heard in the market, actual transaction remains thin as traders have become circumspect anticipating the levels must just be on the verge of ebbing.
We still opine that this flare might be the penultimate calisthenics before the price slump commences as monsoon gets over in India and the promising proposition of autumn revival in demand peters out in China.