Iron ore prices in China have increased in late November. The current levels offers of Indian 63.5% Fe ore fines is now sold at USD 170 per tonne to USD 172 per tonne CNF Chinese northern ports.
Although offer prices for the Indian material (63.5% Fe) are varying within USD 172 per tonne to USD 174 per tonne CNF bids are at USD 2 per tonne less and one odd transaction is heard at USD 170 per tonne CNF.
It is believed that the offer levels will soon edge across the USD 175 per tonne mark propelled by the following factors
1. Limited availability from India as the legal tangle continues over supply from Karnataka.
2. Stronger activity of Chinese consumers expecting that the finished product market will improve. The confidence is based on steady improvement in domestic levels recently.
Many of traders started looking at other origins as the Indian ore seems continues its rough ride. Given the backdrop of scarcity market will continue bolstered in the run up to the winter vacation.