The iron ore spot prices continued ascending on 10th December to reach highest after post crisis, but amidst signals of sheen weaning off.
The current offer levels for 63.5%/63% eclipsed the yearly high of USD 155 per tonne FOB Indian ports during April 20th to April 29th 2010. However, as the sea freight continues to remain soft, CFR levels are no where near the recent high of USD 185 per tonne.
Above all the prolongation of price outburst can be imputed to the frenzy for stockpiling to beat the indicative hike in contract prices for Q1 by about 8% by the big 3.
However, the current levels, USD 175 per tonne to USD 177 per tonne CNF, was not echoing much transactions as traders put up a pretence of strength by reluctance in sell. The price revision is not echoing much response.
Some believe the market would fall back, as the price skyrocketing has overdrawn the upward momentum. In addition, banks also tighten credit as usual in year-end.