Resolute domestic sentiments in China propped up spot iron ore prices further last week
The export prices edged on further with Fe 63.5% material being quoted at USD 159 per tonne to USD 160 per tonne FOB India however transactions were reported at USD 157 per tonne FOB.
This is the highest post crisis level.
As per information available, deals have already been confirmed at USD 178 CFR levels and nor Indian miners are quoting USD 180 per tonne to USD 184 per tonne CFR.
The Supreme Court’s decision to adjourn hearing on Karnataka ban issue till the second week of January is likely to further tighten the supply side as well as positive sentiments among miners and sellers.
The following factors contributed to the buoyancy
1. Limited supply which is evident in 67% drop in export from September to October to 2.91 million tonnes from 4.74 million tonnes from India.
2. Besides, improving finished products domestic market in China has contributed to hyped demand.
The trend is expected to be strong in before the winter break setting the tone for slated 8% hike in quarterly prices in January. But some Chinese market players feel that Chinese mills start to restrict their purchases once CFR levels cross USD 175 mark and probably we could see a reverse in trend in January