Shanghai 28 December 2010 08:14
Spot iron ore prices held at $175-177 per tonne cfr on Tuesday, and are expected to remain stable until the end of the year.
The market remained quiet, as Chinese steel mills continued to stand aside and few transactions were reported.
Offers of 63.5% Indian fines stayed at $176-178 cfr during the day, and 52/52% Indian fines were heard offered at $98.
“The middle and small-size steel mills are the biggest customers of spot iron ore, and they are short of funds at the year-end. They can hardly afford such high prices,” said a Shanghai-based trader.
“Most of my Australian and Indian suppliers are still on holiday this week, so together with limited interest being shown by Chinese buyers, prices should be flat this week,” said a Shandong-based trader.
Some traders said the current price was quite near its peak, and there would be little upward room even if demand recovers next month.
Another Shanghai trader said as the prices move closer to $180, fewer Chinese buyers will be active in the market and Indian suppliers would have to lower their offers.
“Prices will hit the highest point at $180 after new year’s day,” a trader based in Anhui province predicted.
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