October 2009 | Steel Raw Materials
Unexpected rise in iron ore prices: Iron Ore Highlights
When looking at the latest trade data, however, it is hard to avoid reaching the conclusion that China has, at least in the short term, bought too much iron ore.
Against the odds, iron ore prices have stayed firm over the last two to three weeks. MBR had expected lower steel prices in China to affect demand for iron ore and, in turn, put downward pressure on import prices for spot deliveries from Australia and India. If anything, however, the opposite as happened: spot prices for India-origin 63.5% Fe-content iron ore fines have edged up to around $92-93/tonne cfr. A number of factors may help to explain this: the US dollar has weakened against the Australian dollar and the Indian rupee, for example. Signs of a rally in finished steel prices in China have also emerged in the last week or so (see chart one), which may mean that Chinas iron ore importers have more reason...
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