January 2013 | Steel Raw Materials
Import fall to $150/tonne: Iron Ore Highlights
Mills, having sufficient stock at raw material yards, did not need to source from stock at ports.
Between Monday and Friday last week, spot prices fell from $159.91/tonne on Tuesday to $150.60/tonne on Friday. Prices firmed on Monday January 14, but we believe the downward trend is to continue, albeit at a less jerky pace in the coming weeks. Iron ore stocks at ports also firmed this week. Mills, having sufficient stock at raw material yards, did not need to source from stock at ports, which could therefore rebound. Additionally, we believe there is a perception among physical and derivatives market participants that prices are still too high, so we expect the present price levels can not be maintained.
Forward curve falls
As illustrated in the chart, the forward curve has fallen dramatically, with the logical exception of the front month of...
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