21 February 2011
Spot iron ore prices dropped for the first time since late-October, as buyers showed little interest in prices at near-record levels.
Firm prices were heard at $196-198 per tonne cfr China, down $1 from last Friday, with most offers receding below $200 per tonne.
“There is very little buying now, even at $197 per tonne,” said a trader in Hong Kong. “People think that iron ore prices will make a correction following the steel price, although today’s steel market seems better than last Friday.”
Steel prices rebounded today, with the benchmark rebar price on the Shanghai Futures Exchange rising to 5,026 yuan ($765) per tonne, up 41 yuan from Friday.
“The rebound could be temporary, and the clearer trend remains wait-and-see,” said a steel analyst in Shanghai.
While iron ore prices are looking downwards, most market participants are reluctant to predict any sudden softening of the market.
“Prices can hardly fall below $190. Demand is normally stronger after the lantern festival [on Feb 17], and it’s just a matter of time until steel mills
regain their confidence,” said a trader in Shandong.
A tender was closed at $68 fob for 50% Indian fines at the end of last week, industry sources told MB.
Rio Tinto’s iron ore exports from the Pilbara will be disrupted by cyclones brushing the coast of Western Australia, the company said. Shipments in the first quarter were likely to be hit as the wet weather hit port operations.
Firm prices were heard at $196-198 per tonne cfr China, down $1 from last Friday, with most offers receding below $200 per tonne.
“There is very little buying now, even at $197 per tonne,” said a trader in Hong Kong. “People think that iron ore prices will make a correction following the steel price, although today’s steel market seems better than last Friday.”
Steel prices rebounded today, with the benchmark rebar price on the Shanghai Futures Exchange rising to 5,026 yuan ($765) per tonne, up 41 yuan from Friday.
“The rebound could be temporary, and the clearer trend remains wait-and-see,” said a steel analyst in Shanghai.
While iron ore prices are looking downwards, most market participants are reluctant to predict any sudden softening of the market.
“Prices can hardly fall below $190. Demand is normally stronger after the lantern festival [on Feb 17], and it’s just a matter of time until steel mills
regain their confidence,” said a trader in Shandong.
A tender was closed at $68 fob for 50% Indian fines at the end of last week, industry sources told MB.
Rio Tinto’s iron ore exports from the Pilbara will be disrupted by cyclones brushing the coast of Western Australia, the company said. Shipments in the first quarter were likely to be hit as the wet weather hit port operations.
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