Chinese mills to spur spot Indian iron ore prices It is reported that Chinese steel mills, due to recent increase in Capesize freight from Brazil and squeeze in supplies by Australian miners, will divert their purchases to Indian spot market in coming weeks.
Most of Chinese mills are worried about their inventory levels in coming weeks.
Chinese buyers have also faced credit problems for purchase of iron ore from spot market during recent weeks, which has helped in softening ocean freight in India to China route. But at the same time, can have negative implications for steel mills in terms of lower inventories in the near future as very few transactions are taking place at present. Buyers also risk an increase in spot iron ore price again as and when the Credit availability improves for spot iron ore importers.
Whereas Panamax freight in Australia to China route is stable and have witnessed fewer bookings, among Chinese steelmakers' worries of decreased supplies by Australian Miners in the month of April. It was widely reported that Australian miners had squeezed supplies to China in the month of March, after a trade dispute on spot iron ore shipments.
With strong steel market and supply concerns of Australian iron ore, spot market looks poised to move upward.
TTY Price at posting:
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